Disregarding debate over whether the new millennium has alreadybegun or won’t arrive until nearly a year from now, gas tradersgreeted the year 2000 by sending spot prices moderately lower. Itwas hardly surprising that the January aftermarket would open on adownward trend, a Texas marketer said. “We’ve been wondering whythis market has remained up as much it did. Everything seemsbearish.”

The only area that saw declines of more than 5-6 cents or so wasonce again the Northeast. Transco Zone 6-NYC was averaging littlemore than $3 in weekend deals after having started the week around$4.80 with some quotes still surpassing $5. Moderating weather andeasing transportation constraints took early-January swing quotesfor Zone 6-NYC to approximately a dollar under index.

Thursday’s “real news” for a western marketer was Malin, whichresisted softening and even strengthened for the 1st-4th on a bitof a supply squeeze. “It looks like someone got themselves caught alittle short,” she said. Malin rose about a nickel to the mid$2.30s in deals for Friday flow and then tacked on another nickelfor the weekend, winding up about a dime over index. Basically flatPG&E citygates also avoided the overall swing softness, butthey entered January about a nickel below index.

Although a few sources reported swing deals done Thursday forthe entire Dec. 31-Jan. 4 period, most were separating quotes intoFriday-only and Saturday-Tuesday. One large marketer was tradingonly through Monday, obviously planning to re-trade that daydespite the absence of any screen guidance.

Few areas outside the extreme Upper Plains and northern NewEngland were still experiencing freezing temperatures going intothe long holiday weekend. And the outlook for more heating loadthis week is dim. In the latest six- to 10-day forecast releasedWednesday afternoon by the National Weather Service, the onlyheavily populated areas where below-normal temperatures areexpected were Southern California and the Upper Midwest states ofMinnesota and Wisconsin. A Calgary trader noted Thursday that itwas starting to cool down but still above normal for the area.

A western marketer almost sounded like he was praying when hetold GPI, “Boy, we sure need some weather because I’m going longinto the month.” Another marketer had this comment: “Now they saycold weather is coming for the West [Southern California]. However,I have heard that before and then not seen it, so I am not holdingmy breath.”

A Midwest buyer professed to be “not overly surprised” by the173 Bcf storage drawdown reported by AGA, noting the extremely coldweather across much of the U.S. two weeks ago. “I would, however,be surprised to see a similar figure [this] week in light of [lastweek’s] warmup.”

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