Basis shrugs off NYMEX volatility; N.Y. values crash on Spectra line OK

Friday, May 25, 2012

Financial basis swaps markets were mixed for the first part of the week as the volatility in the NYMEX gas futures contract had little overall impact on forward curves.

The relative strength in June basis at Sumas comes as the hydro season in the Columbia River Basin is expected to be shorter than it was in 2011, according to Platts unit Bentek Energy. "Upward pressure on forwards cash basis at Sumas will continue based ... on current weather and water supply forecasts," Bentek said in a report last week.

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