For the third day in a row, flat pricing dominated the cash market Thursday. A bit of approaching moderation of winter weather in the Northeast was approximately balanced by the previous day’s strength throughout Nymex’s energy futures group.

Although there was a tiny bit more bias towards slightly higher numbers (especially in the West) than on Wednesday, most points again were either flat or a penny or two higher or lower. The market also resembled a carbon copy of Tuesday and Wednesday’s trading in that no point varied from unchanged in either direction by more than about a nickel.

Cold and snowy weather was lingering in the Northeast longer than had been anticipated, although more of it was shifting southward into the Mid-Atlantic. Heavy snowfall was predicted overnight Thursday for the Mid-Atlantic and also including eastern Pennsylvania, New Jersey and possibly as far north as the New York City/Long Island metro area. But then a warm-up would cause rapid snowmelt through Saturday before a less intense (more rain than snow) cold front moves into the Northeast late that night, according to The Weather Channel (TWC).

Earlier in the week the Midwest was expected to be emerging from its own winter storm by Saturday, but new short-term forecasts cast some doubt on that development. A new cold front followed by a chilly Canadian high-pressure air mass would be moving through the region Friday and Saturday, TWC said, replacing temperatures 5 to 20 degrees above average ahead of the cold front with temperatures 5 to 20 degrees below average in its wake. However, as an Upper Midwest trader said Thursday afternoon, “We’ve got slush piles still around, but most of the snow is melting.”

Meanwhile, much of the West is at the other end of the thermometer spectrum. Although the Pacific Northwest has been invaded by a new winter storm as predicted, citites in the desert Southwest likely will continue to set date-specific high temperature records through the weekend. Many of Thursday’s small price advances were recorded in western markets, which had no high-linepack OFO by PG&E to contend with for Friday’s gas day.

However, “there’s plenty of gas out there,” as evidenced by several western pipes still saying they’re running high linepack, a Calgary-based producer noted.

A marketer said Chicago citygates have been consistently trading within 3-4 cents of the April screen this week. “Flat prices are OK for a day or two, but then you start to want some change,” she commented. “But I see more of the same for Friday, maybe a little weaker” because of moderate retrenchment among energy futures Thursday.

The Energy Information Administration reported a storage withdrawal of 46 Bcf for last week, which fit pretty well into the range of most prior expectations. Nymex traders treated it as slightly bearish, sending the natural gas screen down just over 9 cents on the day. Crude oil also fell, but only by a quarter to 7 cents under the $38/bbl level.

A couple of sources remarked on how “dead” the market has been this week, with spring break vacations and the college basketball phenomenon know as “March Madness” drawing bodies and minds away from the gas business.

©Copyright 2004 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.