Spot gas prices were lower compared to last week while the NGL barrel was higher which gave frac spreads good gains for the period. The gross margin climbed $4.93 to $24.99 at Conway and improved a strong $5 at Mont Belvieu to $25.92.
Strong inventories have made sizable price gains difficult for natural gas, but true wintertime weather so far this year and forecasts for more artic weather over the next two weeks have raised expectations that the glut that has kept sentiment bearish will mostly be trimmed. Climate Prediction Center continues to forecast below average temperatures in most lower 48 states (excluding California) until Feb. 8. The lowest temperatures are expected for the Midwest and Rust Belt and in such cities as Chicago and Minneapolis.
