Sources figured it was only a matter of time before this week’swinter storm-related price hikes started to fade, and the time wasThursday. Softening was only slight at most points, however, andseveral registered as flat. The biggest drops of more than a nickeltended to occur in the markets that had seen the biggest increasesearlier in the week, such as Northeast citygates and NorthernNatural-demarc.

Sources look for more price declines today, pointing to thescreen’s fall Thursday, moderating weather and the usual weekendslump in demand. But a Texas producer thought prices wouldn’t godown very far since a new cold front is expected early next week.However, although the National Weather Service affirmed that colderthan normal temperatures are forecast for most of the southern halfof the U.S. after Tuesday, the major heating markets of the Midwestand Northeast are likely to see above-normal temperatures, it said.

Meanwhile record lows were being set in many areas Thursdaymorning, with below-zero readings being recorded in several Plainsstates. However, the temperatures were rebounding fairly rapidly,sources said. A marketer expected index-area and lower pricing inthe mid $2.10s to prevail in the Midcontinent today.

A warmup has already started in the West, one trader told DailyGPI, and nowhere was it more evident than in the spread between theSouthwest basins and the Southern California border. Those points,which have often traded about 30 cents apart recently, are nowseeing the gap narrow to about 20 cents, he said. However, as therest of the country gets a reprieve from this week’s cold, pricesin the San Juan and Permian basins should fall back in line, headded. Another source said basin prices were dropping in late dealsThursday.

Activity remained light for many as Houston Energy Expocontinued to claim the attention of much of the trading community.But with the trade fair winding up Thursday, most if not allplayers should be back in the office today. Rockies quotes stayedabove $2, but there definitely were more sellers than buyers, amarketer said; the buyers knew this and forced prices lower astrading progressed. However, a dramatically different mix ofplayers returning from the fair could change the market’scomplexion, he said.

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