Weak

A couple of western upticks notwithstanding, the overall cash market responded to persistently weak weather fundamentals, prior-day energy futures declines and correct expectations of a bearish storage injection report with price declines ranging from a little less than a nickel to about 30 cents. A considerable majority of the drops were in double digits.

Several flat points in the East were included in an overall softer cash market Tuesday. Prices were pressured lower by weak weather demand throughout virtually the entire market, a 9-cent screen drop the day before and the continuation of a bearish storage mentality.

El Paso Corp. posted a tepid first quarter profit on Tuesday, stung by weak natural gas production and hedging losses. However, the Houston-based company reversed its losses from a year ago, lifted by strong natural gas pipeline and field service earnings.

As expected, generally weak weather-related demand, large day-earlier drops in energy futures and the decline of industrial load over a weekend combined to send prices lower by double digits across the board Friday. Some drops were as small as a little over a dime, but they ranged to just above 40 cents.

El Paso Corp. posted a tepid first quarter profit on Tuesday, stung by weak natural gas production and hedging losses. However, the Houston-based company reversed its losses from a year ago, lifted by strong natural gas pipeline and field service earnings.

Putting in a second “weak” trading day that had some market experts rumbling about an established top, May natural gas futures on Tuesday traveled no higher than $7.585 before settling at $7.572, down 2.2 cents on the session.

While most of the market continued its weekend downturn Monday based on weak fundamentals, some Midcontinent/Midwest and West points found enough heating load support to hold firm at flat to up about a dime. The losses ranged from a couple of pennies to nearly a quarter, with Northeast and Louisiana points claiming many of the largest declines.

Responding to generally weak weather-related demand, healthy use of storage and the screen’s pre-New Year’s Eve drop of about a quarter, swing prices continued to decline Monday in the still-nascent new year. The common range of declines between about 20 cents and about 65 cents reflected larger drops than occurred last Thursday in most cases.

A reduction in generating resources, resulting from potential risk factors such as an aging number of power plants, environmental regulations, as well as financial uncertainty in the market, could bring about deficit electricity conditions in certain areas of New England within the next two to four years, ISO New England (ISO-NE) said on Thursday.