Warming

Oil and gas industry executives have all duly noted the change in Washington’s thinking on global warming and greenhouse gases, but at least some are still in denial of what’s to come. Those who think “all this renewable energy stuff is nonsense” are in for a rude awakening, an oil and gas industry researcher told NGI.

Oil and gas industry executives have all duly noted the change in Washington’s thinking on global warming and greenhouse gases, but at least some are still in denial of what’s to come. Those who think “all this renewable energy stuff is nonsense” are in for a rude awakening, an oil and gas industry researcher told NGI.

Despite overall warming trends, prices were mostly near flat but higher at a majority of points Wednesday as heating load continued to rise in a few areas. The previous day’s 3.7-cent gain by May futures had a small bullish effect on the cash market.

With warming trends due to be under way Wednesday in some key market areas and seasonal to above-normal temperatures dominating the overall weather outlook, prices fell at nearly all points Tuesday. As on the day before, changes were generally small with few exceeding a dime except in the Northeast, where citygates tended to soften by amounts roughly similar to those by which they had risen on Monday.

Even with a modest warming trend getting under way Friday in parts of the Midwest, continued forecasts of sub-freezing low temperatures in much of the East and in the Rockies and Western Canada in the West were having considerably more success in boosting prices Thursday than they did a day earlier. The cash market also had a smidgen of prior-day screen support from Wednesday’s 1.1-cent rise by March futures.

As sources had predicted, the cash market fell at most points Friday, pressured lower by warming trends in the Midwest, Midcontinent and South and by the January futures drop of 8.8 cents a day earlier. The usual weekend decline of industrial demand also was a factor in the overall softness.

Falling points modestly outnumbered rising ones Wednesday as forecasts of cooling trends in several areas vied for influence with warming trends in other areas, continuing hot weather across most of the southern half of the U.S. and a prior-day futures gain of 15.2 cents. Most of the losses were considerably larger than the gains, so overall softness was clearly dominant.

Moderate warming trends in parts of the Midwest and Northeast, along with Friday’s 13.3-cent uptick by July futures and the return of industrial load from its typical weekend decline, propelled the cash market to gains at a large majority of points Monday.

Thursday’s July futures dive of 34.9 cents and forecasts for a weekend reversal of modest warming trends that had been occurring in the Midwest and Northeast resulted in double-digit drops at most points in trading for the first weekend of summer Friday. The decline of industrial load that accompanies a weekend market also played a part.