Markets

Citing “dangerously low” propane supplies throughout the country, but particularly in the Midwest and Northeast, the National Propane Gas Association (NPGA) has asked FERC for an emergency order to allow, or if necessary direct, Enterprise TE Products Pipeline Company LLC to temporarily provide priority treatment to propane shipments from Mont Belvieu, TX.

Physical gas prices for Thursday delivery nationwide continued to bound higher in Wednesday’s trading as intense cold, ice and snow dominated headlines, pipelines restricted deliveries and concerns surrounding end-of-season storage levels intensified (see related story).

March natural gas is set to open 16 cents higher Tuesday morning at $5.07 as traders balance somewhat milder short-term weather forecasts with expectations of the thinnest ending inventories since 2008 when spot futures traded over $10. Overnight oil markets were narrowly mixed.

Population centers across the Northeast, North Central and lower Mississippi Valley can expect this winter’s unusually cold temperatures to continue through most of the next three months, while the Southwest and parts of the Southeast will see a bit of a warm-up, according to forecasters at Weather Services International (WSI).

Physical gas prices for Wednesday delivery vaulted higher in Tuesday’s trading as forecasts called for brutal cold, snow and wind to return for a broad section of the country stretching from the Rocky Mountains to New England. The March natural gas futures contract followed suit, soaring back above $5 and closing at $5.375, up 47 cents from Monday’s finish.

Continuing on the path established late last week, the March natural gas futures contract probed lower Monday, recording a low of $4.751 before closing the day’s regular session at $4.905, down 3.8 cents from Friday’s finish.

The new pattern of the North American natural gas trade is staying entrenched as northbound flows from the United States hold their gains, while southbound exports from Canada continue to shrink.

President Obama on Thursday nominated Norman C. Bay, current director of FERC’s Office of Enforcement (OE), to the Commission and to be designated chairman upon appointment by the U.S. Senate.

As the first storms in more than a month swept through California Thursday, concentrated in the northern half of the state, water officials said the state’s snow pack was at a 50-year low point for this time in winter. But state energy planners aren’t worried about California’s energy mix, which includes a good portion (up to 15%) of hydroelectric supplies.