The recent running of the bulls in Pamplona, Spain, seems prettytame compared to the stampede developing in the gas market. It wasa more hectic Nymex closing day than usual Wednesday as a mildincrease in the last day of trading August futures was accompaniedby what one source called a “pitiful” little AGA storage injectionreport, Michigan electric utilities appealing a day in advance forenergy conservation, a skyrocketing Access session and higher Julyswing numbers. All in all, it added up to an extremely strongmarket that “there doesn’t seem to be any way of stopping,” a Texasmarketer said.

Things are headed up like a rocket and got extra propulsion fromthe AGA figure, which was the lowest comparable injection level infive years, according to one trader. Chicago citygates for Augustbegan the day trading around $2.64 but were hitting $2.73 afterthe AGA release, he said. Henry Hub cash likewise jumped up severalcents to $2.67 on the news. This is about the fifth month in a rowwhere cash has soared following the settle, he added.

A Northeast-oriented marketer agreed that basis got firmerWednesday. He pegged Transco Zone 6-NYC at plus 32, Zone 6(non-NYC) at plus 25, Texas Eastern M-3 at plus 25, CNG at plus19.5 and TCO at plus 17-17.5, all higher than reports from earlierin bidweek. The marketer conceded that AGA’s figure of 41 Bcf waspretty small, but said there’s no reason not to expect an evensmaller volume next week “because of the way people are pullingfrom storage to sell at the high prices during this heat wave.”

Another trader said Southern California border basis was runningat plus 3 for August, plus 4 for September and plus 1 for thewinter season. PG&E citygates are running at plus 14 forAugust, he said.

A Calgary source’s bidweek quotes included Malin in the mid$2.20s, Stanfield and Kingsgate in the mid $2.10s and intra-Albertain the high C$2.90s. However, those included a few deals donebefore Wednesday and undoubtedly will reflect the lower ends ofranges at those points, he said. In fact, an electronic tradingservice showed intra-Alberta climbing to C$3.06 late in theafternoon, he said.

Index-plus deals continue to rule the Midcontinent for August, amarketer said. “Index trading at plus 1-1.5 right now is evidenceof the strength of this market. Buyers just want to minimize theirlosses.” He quoted a wide range of $2.46-55 for ANR-Southwest,Panhandle Eastern and NGPL-Midcontinent packages done so far thisweek. But as of Wednesday, “the entire world is a seller at $2.55,and bids are not far off at $2.535-54.” The marketer reportedgetting NorAm offers at $2.60 for the east pool and $2.55 for thewest pool.

The July swing market resumed its march upward followingTuesday’s pause. Incremental numbers ranged from flat (mostly at afew western points) to almost a dime higher. TheMidcontinent/Midwest region, where cooling load seemed to be mostintense, stood out with the highest overall increases. Michigancitygates surpassed $2.70 in some cases as both Consumers Energyand Detroit Edison issued advance appeals for voluntary customerreductions of electricity use today.

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