The rise in the immediate month was identical to the rise in April forward pricing at the benchmark Henry Hub, which rose 12.0 cents during the time to $4.763/MMBtu on Wednesday. The summer strip (April-October) also gained 12.0 cents, averaging $4.840, while the winter strip (2022-2023) gained 9.0 cents, averaging $4.960, according to Forward Look data.
The bulk of U.S. locales saw less significant basis changes in April, with most trading within a nickel of the Henry Hub. The Northeast, on the other hand, was an outlier, with a wintry mix arriving late in the Week and predicted to increase heating demand into the Week. Temperatures were expected to fall, with some locations experiencing temperatures below freezing.
According to Forward Look, Algonquin Citygates April basis increased 23.0 cents from February 24 to March 2 to reach + 49.4 cents in New England. On Wednesday, the April fixed price was $5.256, while the summer strip was up 26.0 cents to $4.490. The average price of the winter 2022-2023 strip increased by $2.090 to $18.523.During the period, Transco Zone 6 NY April basis rose 9.0 cents to minus 52.8 cents, with a fixed price of $4.234. Summer rates increased by 22.0 cents to $3.910, while winter prices increased by 64.0 cents to $7.690.
The higher basis rises have spread to upstream Appalachia markets, where production has struggled to fully recover from freeze-offs and storage stockpiles have continued to shrink due to the cold weather.Forward Look revealed that the Texas Eastern M-3 April basis rose 11.0 cents from February 24-March 2 to minus 53.3 cents, with a fixed price of $4.229. The summer strip gained 26.0 cents to $3.970 on average, while the winter 2022-2023 bundle gained 34.0 cents to $7.102.
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