Hot weather fails to put sizzle in Midcontinent spot gas market

Houston (Platts)--12Jul2006


The Midcontinent spot natural gas market was relatively static compared
with the Gulf Coast and eastern markets Wednesday, as temperatures nearing 100
degrees Fahrenheit in northern Texas and Oklahoma had little impact as prices
gained a little more than 15 cents compared with Tuesday's levels.

"It was basically a NYMEX move for cash. Storage is nearing critical [in
the Midcontinent region] and people are having to deal with that situation
first," one Texas trader said. "Any peak demand can be handled with the
storage utilities already have in the ground."

With the low 90 degrees Fahrenheit being the norm in the Oklahoma City
area this time of year, traders were looking at high temperatures near 100 for
at least through the weekend, according to the National Weather Service.

"It's a few degrees hotter than normal, which is not a big deal for a day
or two; but, if this keeps up into next week we could see some more interest
in cash," the trader added.

Natural Gas Pipeline Co. of America's Texok zone gained more than a dime
compared with Tuesday to average in the low to mid- $5.50s/MMBtu, while
Centerpoint's East zone increased nearly 15 cents to average in the mid- to
upper $5.40s/MMBtu.

ANR Pipeline in Oklahoma, Panhandle Eastern Pipe Line, and Natural's
Midcontinent zone all moved up more than 15 cents compared with Tuesday's
midpoints to average in the upper $5.30s/MMBtu.

--Tom Castleman, tom_castleman@platts.com

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