Cash prices finished the week on a positive note as continuedincremental heating demand and a strong futures market bolsteredprices Friday. Trading was very active from the outset, a Gulftrader told Daily GPI. “There were some undeniable factors pointingto higher cash prices. Overnight gains in Access trading set thetone, then the over the counter market verified the strength,” heexplained. So it came as no surprise when the first cash offerswere a nickel or more above Thursday’s averages. But the marketcould not sustain the price rally and after buyers had filled theirrequirements at around 9:45 CST, seller realized their lowestprices of the day in late morning dealings.

Higher prices were not localized in the East. Rockies pricesalso defied traders’ expectations by retaining their strength.Sumas, however, was the notable exception slipping almost a nickelfrom Thursday’s levels. And a Northwest trader fears the price routwill only get worse today. He points to storage maintenance inBritish Columbia that will flood the market with as much as 300Mcf/d.

But as British Columbia loses a storage facility, the Rockiesgains one back. A Rockies trader said the Clay Basin Storagefacility, which is located near Vernal, UT, being back up afterbeing down for four days due to project work (See Daily GPI, April9) helped keep the market strong Friday. “When the Clay Basinopened up, any excess gas went there, instead of being sold at acheaper level. There is 56 MMcf going in [Saturday] from theNorthwest pipeline, and I think that helped keep things up.”

Looking forward to this week, one Midcontinent trader saidweather will be making its presence felt in the opposite directionof last week’s price increasing performance. “Although there issnow on the ground in Des Moines, IA, temperatures should normalizein the next couple of days and cause spot prices to slip slightly.”

One forward-looking Midwest source is already scouting out theupcoming bidweek. He expects a heavy amount of index deals, with abullish futures market helping to welcome in the new prompt month.

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