weather

With futures guidance having turned neutral Tuesday, spreading cold weather not yet getting very severe, and something of a feeling that the cash market spikes of the previous two days might have been overly exuberant, prices fell at most points Wednesday.

Backing up the government’s winter forecast released last week, Rockville, MD-based EarthSat Energy Weather said Monday that it expects this winter to be colder than last year’s season, but still warmer than normal.

With hot weather having moderated in its Northeast market area, Tennessee canceled Friday the Critical Day 1 OFO that it had issued Wednesday. East Tennessee Natural Gas also lifted its related Balancing Alert OFO (see Daily GPI, Aug. 3).

Getting support from weather that would continue baking most of the U.S. through the weekend, Thursday’s 15.5-cent push higher by expiring August futures and a lessening of the storage bearishness that has pervaded the market in recent months, cash prices continued to rise at a majority of points Friday.

With 90-degree Florida weather forecasted, Florida Gas Transmission issued an Overage Alert Day Monday for market-area customers; it had a 25% tolerance for negative daily imbalances.

Cash prices soared Thursday in the Northeast and had another solid day of gains in nearly all other regions of the U.S. because of hot weather, strong power generation demand and continued help from the futures market despite the bearish 89 Bcf net weekly storage injection reported by the Energy Information Administration for last week.

Citing Florida forecasts of 90-degree weather, Florida Gas Transmission issued an Overage Alert Day for market-area customers Thursday with 15% tolerance for negative daily imbalances.

Most points moved lower again Monday as weather-based demand remained somewhat light in the key northern market areas of the Midwest and Northeast and the screen continued to give off negative vibes. However, a few instances of flat to a little more than a nickel higher numbers in the scorching West averted across the board softening.

Florida Gas Transmission issued an Overage Alert Day notice in its market area for Thursday’s gas day, citing forecasts of 90-degree weather in Florida and lower linepack. The tolerance for negative daily imbalances was set at 20%.