Save for later Print Download Share LinkedIn Twitter The July gas contract’s rally continued Monday, adding 5.6¢, or 1.7%, to end Monday’s session at $3.352 per million Btu. The move consolidated Friday’s 14.7¢, or 4.7% jump to just under $3.30/MMBtu for a weekly gain of 6.4%, or 19.9¢. The prompt month traded between $3.273 and $3.364. The 12-month strip rose 4.3¢ to $3.268, while the 2022 strip was up 2.7¢ at $3.01 (Futures contracts). Some analysts saw Friday’s jump as technical and warned bears if the contract is not pulled back below $3.15, a move into the $3.50s is in the cards, especially if resistance is breached at $3.396. But physical factors are also at play, including extreme heat expected in the West and in Texas (Briefs). Also, exports to Mexico have reached all-time highs of 6.8 Bcf/d over the past few days thanks to new pipelines coming on line to supply rising gas-fired generation. * * * A spike in regional cooling loads pushed El Paso - South Mainline spot gas to a $10 high as it rose $4.67 to average $8.48 -- the most significant price move of the day -- while SoCal Citygate advanced $3.46 to average $8.22. This compared to benchmark Henry Hub cash prices that were up 7¢ at $3.28. In the Northeast, Transco zone 6 New York was $2.30, while Boston-area Algonquin advanced 24¢ to average $2.39. In West Texas, cash prices at the Permian's Waha Hub fell 29¢ to average $2.90. Meanwhile, Rockies leader Kern/Opal rose 27¢ to $3.47 and Northwest Sumas gained 9¢ to average $3.26. In Canada, Alberta benchmark Aeco rose 4¢ to $2.64 (Daily spot prices). * * * July WTI crude inched 3¢ higher to $70.91 per barrel Monday, retreating from the session high of $71.78/bbl. Demand optimism is rising in the US, China and Europe as post-pandemic economic activity resumes.
