Prices fell at all but two points Tuesday in the start of the third holiday-shortened trading period in less than a month. The softness appeared to defy cooling trends forecast for Wednesday in the Midwest and South while the Northeast gave up Friday’s big gains even with lows below freezing remaining in the next-day forecast.

Flat to almost imperceptibly higher quotes at Westcoast Station 2 and Sumas (prompted primarily by the pipeline’s low-linepack OFO) were the only exceptions to declines ranging from a little less than a nickel to nearly $2.70. Only a few losses were less than a dime, and the Northeast was home to all of the plunges exceeding a dollar.

Some of the Northeast’s drops were so large that they took the point’s average solidly below $3.

Cash trading bulls will be out of luck if they depend on the screen for help Wednesday. February futures continued their recent losing ways, winding up with a daily loss of 18.2 cents to $2.488, which was the lowest daily settlement for a prompt-month contract since March 5, 2002 (see related story).

Reflecting the transitional weather picture, some pipeline restrictions were ended during the long weekend while others were being added (see Transportation Notes). Although it did not initiate a restrictive action, Gulfstream said its linepack was at the high end of acceptable operating levels.

A warming tendency in the Rockies was in sharp contrast to the neighboring Pacific Northwest outlook, where a major winter storm was setting up to take occupancy Wednesday night. Prices were soft in the Midwest even though Wednesday’s forecast called for continuing scattered snow and most of the region unlikely to get as warm as freezing. The South was expected to see low temperatures Wednesday but remain mild in the western end and become merely cool in the eastern end.

The forecast was especially frigid for the Upper Midwest market area of Northern Natural Gas, which projected averages of 10 degrees Tuesday rising slightly to 14 degrees Wednesday before plunging to 7 degrees Thursday and then rising again to 18 degrees Friday.

A utility buyer in the South said his company’s service area is currently experiencing mild days and cold nights but can expect colder conditions later this week. However, in recent weeks it has stayed fairly consistently about 10 degrees above average for both highs and lows, he said.

The buyer said he wants to use storage to meet customer needs as much as possible for now because the forecast for next week indicates almost no heating load. The utility’s gas throughput is the lowest this winter than he’s seen in years, and certainly less than in the previous two winters, he added.

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