We are reaching the time of year when the Northeast typically starts getting chilly, but the weather has been mild so far in October. The already low Appalachian cash basis prices have plunged even lower in response. Full cash prices have been punishingly low for the production zone over the week ended October 13, averaging about 85 cents for EGS and 83 cents for TGP Z4 according to Bloomberg data — far below breakevens for even the most well-situated producer. Unlike the futures market, physical trading was closed for Monday’s Columbus Day holiday. That means that cash prices for five of the seven days last week were determined in trading on Friday for Saturday-through-Tuesday delivery.
Featured Articles
- Analyst Insight
Northeast Gas Demand Down as Summer Starts
Northeast gas demand declined week-on-week despite the start of summer, leading to low cash basis over the Juneteenth weekend.
- Analyst Insight
In-Region Northeast Gas Demand Flat, but LNG Feedgas Returns
LNG feedgas from Cove Point returned on Sunday, but aside from that gas demand in the Northeast for the week ended October 14 was flat to the prior week.
- Blog
Ridin’ The Storm Out – Will the Storm Set to Slam the South Lead to a Winter Storm Uri Reprise?
The gas market was roiled this week by the severe winter weather set to sweep across the country. Today, we discuss the market’s jump in advance of Winter Storm Fern’s arrival and whether its effects will rival the tremendous dislocations caused by Uri.
