Prices failed to move much more than a penny or two up or downMonday at most eastern points, but power generation load was strongenough to support moderate upticks in the West. Trading activitywas slow for both June swing and July gas, said a marketer who sawGulf Coast pipes come off 3-4 cents from their early-morning highs.Cash was essentially waiting for something to happen, he added,”because neither it [cash market] nor the screen is going anywherethese days.”

Mild weather prevailing along much of the East Coast has leftrelatively little electric utility demand in the region, one tradersaid, leading him to expect mild softness today there and in theGulf Coast. However, a marketer is looking for some strength in theMidcontinent, citing a cold front moving into the Midwest. Hereported a moderate pick-up in end-user buying in late tradingMonday.

Despite Pacific Gas & Electric’s having just ended a weekendhigh-linepack OFO and still expecting an above-target linepackfigure for today, demand was strong at the PG&E citygate, whereprices recorded Monday’s biggest increase of over a dime. Warmweather in non-coastal areas of California, combined withthermometer readings exceeding 100 degrees in some areas of theSouthwest, supported prices in California, the Rockies and San JuanBasin, traders said. Peak power prices rose into the low $40s/MWhat both the Palo Verde switchyard and California-Oregon border asthe heat coincided with lessened hydroelectric generation, theyadded.

Western price discovery and liquidity were noticeably hamperedby many area traders being out of the office at New Mexico’snatural gas trade fair in Santa Fe, a couple of sources said.Similarly, a Midcontinent marketer said liquidity in that marketwas less than usual due to a gathering of the Omaha (NE) GasGathering Association.

A Calgary source doing same-day intra-Alberta deals in the midC$2.70s was surprised to see a package for today’s flow jump toC$2.80. A NOVA pigging operation on its Western Alberta Extensionwill take up to 1 Bcf/d off the market, she said, but that doesn’tstart until Wednesday.

Tropical Storm Arlene caused a storm watch to be posted forBermuda but was not considered a threat to Gulf of Mexicoproduction.

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