US Northeast spot gas prices were trading above New York Harbor fuel oil prices Tuesday as a cold snap descended upon the eastern US.
Transcontinental Gas Pipe Line zone-6 New York spot gas was trading around $22/MMBtu Tuesday on IntercontinentalExchange Tuesday, while Algonquin city-gates, a proxy for New England, was trading around $28.24/MMBtu.
Platts assessed New York Harbor LSFO at $16.59/MMBtu-equivalent Monday, 0.3%S high pour at $19.28/MMBtue and 0.3%S low pour fuel oil at $20/MMBtue.
Owners of dual-fuel power-generation facilities that can switch between natural gas and oil frequently have been using the latter because it has been easier to procure at times, its prices have been stable and it has often been less expensive this winter.
Fuel oil sources have said in recent days they expected a fresh round of fuel oil buying as a result of this week's cold snap.
"Arctic air will continue pushing south and east through the eastern two-thirds of the US on Tuesday, with high temperatures as much as 20 to 30 degrees below normal in some locations," the National Weather Service said Tuesday.
"Combined with gusty winds, this will create dangerous wind chill conditions, with wind chill values of [minus]-30 or more across parts of the Upper Midwest, especially from late Tuesday evening through Wednesday morning."
