Swing gas for today-only flow generally was down a little fromlate-bidweek levels, but not in all cases. In fact, a Sumas traderfound his swing quotes running up to a nickel more than his Julybaseload deals. And even at the points where there were slightretreats, sources still viewed the aftermarket as starting offfairly strong. Despite a stagnant August screen Wednesday, the samething that caused end-of-June and late-bidweek run-ups was creditedfor the swing strength: oppressive heat almost everywhere that hadpower plants straining to handle the air conditioning load.

It doesn’t seem like this Fourth of July market will be nearlyas soft as usual, said a Houston-based producer. In previous years,he recalled, holiday-period price drops could range up to 15 centsor so, “but it looks much stronger this time.”

Having a Canadian holiday today and a U.S. one Monday made for aconfusing array of trading patterns. Some quoted July 1st-onlydeals, others 1st-2nd, and still others 1st-6th. And then there wasthe Calgary marketer who said some trading partners insisted ondoing deals through July 5 only, “so it looks like I’ll be back inon Monday to re-trade this stuff.”

A Texas source said he made sales to utilities for today onlybut made his purchases through July 6 “because that’s whatproducers wanted.” That gave him incentive to hope that pricesremain high through the weekend, “but even if they don’t, I’ll justtake the gas to storage.”

It surprised a lot of people to see how strongly weekend pricingis shaping up, according to a Gulf Coast marketer. “They thoughtthe price depressant of industrial shutdowns for the holidaycouldn’t be overcome by weather, but for now it sure looks likethat’s how it is,” he said.

Western prices look to be a bit softer for early July than inother areas. Cal-ISO, the California Independent System Operator,said a Stage One Electrical Emergency was declared for Tuesdayafternoon only as a few cogeneration and other non-nuclear powerplants went down and decreased the state’s electric operatingreserves below the 7% level. Reserves were sufficient againWednesday, a Cal-ISO spokesman said, and a cooling trend due tostart today should prevent any return of Tuesday’s emergency.Another indicator of western softness was that Pacific Gas &Electric, while not declaring an OFO, projected a higher linepackthan its target through Saturday.

What about the rest of July, after the holiday is past? Besidesthe forecasts of widespread heat, a marketer was bullish aboutrecent high electric prices and crude oil futures that went above$19/bbl Wednesday. In fact, “it looks like the entire energycomplex is making gains,” she said. But while acknowledging soaringcosts for electricity, a gas buyer offered this little shower ofice water: “People do stupid things during bidweek; they assumethat these temperatures and power prices will persist through themonth.” She was not among those people.

Bidweek wrapped up mostly on the high notes sounded Tuesday,although a Gulf Coast marketer detected a bit of fallback asWednesday’s final deadline approached.

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