Markets

FERC invoked its emergency authority Friday under the Interstate Commerce Act to help alleviate “dangerously low” propane supplies to consumers in the Midwest and Northeast.

Spot natural gas for Tuesday delivery bounded higher in Monday’s trading, with only one western point not in the plus column and most locations posting multi-dollar gains. Lowest increases were just under $1.00, but at the extreme end, prices gained close to $15.00. Eastern points led the charge higher, but New England and the Great Lakes were not far behind. Futures headed south. At the close, March was down 19.6 cents to $4.579 and April lost 11.0 cents to $4.406. March crude oil added 18 cents to $100.06/bbl.

Severe winter weather conditions in other areas of the nation prompted California’s independent grid operator Thursday afternoon to issue an energy conservation alert because of constraints on natural gas supplies imported into the state from the Southwest, Rockies and western Canada.

A friend in high places has stepped forward to support TransCanada Corp.’s plan for enabling growth in U.S. shale gas exports to Ontario and Quebec by working with their distributors on additions to northbound pipeline capacity.

As state and federal officials last week were assessing the potential for the drought to impact hydroelectric power this summer, California Independent System Operator (CAISO) on Thursday issued a conservation alert because of a shortage of natural gas supplies that underpin much of the state’s power generation.

Spot natural gas prices for weekend and Monday delivery overall took a hard fall in Friday’s trading, but weather and transportation-challenged Midwest points were able to post multi-dollar gains as temperatures were forecast to plunge by Monday. The gains were more than offset by losses at Northeast, East and California locations.

Physical natural gas prices for Friday delivery fell hard and fell often in Thursday’s trading as weather forecasters called for warming trends in the Midwest, East and California.

Multiple polar vortices, which brought chilling cold to a large swath of the country last month and continuing cold over much of the nation, are driving the number of recorded heating degree-days (HDD) to unusual highs, according to National Oceanic and Atmospheric Administration (NOAA) data.

Credit Suisse has raised its average U.S. natural gas benchmark price forecast for 2014 by 13% to average $4.30/MMBtu because of record storage withdrawals, which by the end of March are expected to be 1.1 Tcf. Prices in 1Q2014 are seen averaging $4.80, a 50-cent hike from a prediction at the end of 2013.