Warm

Natural gas inventories were up last year on warm winter temperatures and a modest increase in domestic marketed production, which lead to a decline in the average wellhead gas price, according to the Energy Information Administration’s (EIA) “Natural Gas Annual 2006.”

Citing high linepack and forecasts of warm weather, MRT said a System Protection Warning (SPW) would be in effect for the holiday weekend gas days of Saturday through Monday. Under the SPW, MRT would not schedule any volumes that resulted in a daily long position for a shipper, and no makeup of short positions was being accepted.

Citing high linepack and forecasts of warm weather, MRT said it will implement a System Protection Warning (SPW) at the start of Wednesday’s gas day. See the bulletin board for details of the SPW conditions.

Citing unseasonably warm weather and reduced natural gas demand, the Energy Information Administration (EIA) in its Short-Term Energy Outlook for January lowered the ceiling for spot gas prices this winter to less than $7/Mcf. The agency last month predicted that winter spot prices would stay below the $9/Mcf mark (see NGI, Dec. 18, 2006).

Citing unseasonably warm weather and reduced natural gas demand, the Energy Information Administration (EIA) in its Short-Term Energy Outlook for January lowered the ceiling for spot prices this winter to less than $7/Mcf. The agency last month predicted that winter spot prices would stay below the $9/Mcf mark (see Daily GPI, Dec. 13, 2006).

With natural gas supplies in storage remaining ample and weather forecasts still calling for unseasonably warm temperatures in most major gas demand regions, January natural gas futures worked lower in Monday’s overnight Globex trading session and continued the plunge in Tuesday’s regular session. With the lack of bullish fundamentals, the January contract, which expires Wednesday, threatened a breach below $6 with a low on the day of $6.060 before ultimately settling at $6.113, down 52.2 cents on the day.

The outlook for continued warm temperatures continued to weigh down natural gas futures on Monday as the January contract plummeted lower, recording a low of $7.040 before settling at $7.075, down 33.4 cents on the day.

Citing high linepack and warm weather forecasts, MRT issued a System Protection Warning that took effect Saturday until further notice. While it is in place, MRT will not schedule any volumes that result in a daily long position and will not accept any makeup of short imbalance positions.

Citing forecasts of warm weather in its service area, MRT implemented a System Protection Warning Wednesday. See the bulletin board for SPW conditions.