May 1 is known as May Day, celebrated as a springtime festivalin some countries, according to Webster’s. But Friday must haveseemed like “Mayday” (international distress call) to many tradersas they watched cash prices crumble to levels that were virtuallyunimaginable last month. A few Gulf Coast points were sinking below$2 in widely ranging quotes.

Since June futures fell only a couple of cents, “following thescreen” was no longer a valid explanation of the cash softness. Fora change fundamentals were playing a greater role, sources said.They offered these thoughts about the weekend weakness: mildweather; demand normally goes down on weekends; oversupplysituations on several pipe systems; and “there’s a lot of gasavailable out there.” And a producer noted that people had done alot of deals Thursday lasting through Monday, “so it was hard tofind a market today [Friday].”

When Portland, OR is one of the warmest places in the entirecountry, a marketer said, you can bet prices are coming off.

Western markets were “crushed” by weekend Operational FlowOrders declared by California’s major distributors, PG&E andSoCal Gas (see Transportation Notes), one marketer said. The OFOswere backing up gas at the borders and in the supply basins, hesaid.

Intra-Alberta was somewhat resistant for a while to the overallsoftening as provincial quotes in the high C$1.90s Friday weren’tmuch more than a nickel below index. But late-afternoon quotes onan electronic trading service had fallen into the low C$1.90s, amarketer said.

Barring unusually emphatic influences from futures or weather, aproducer doesn’t think cash prices will see much new change untilnearly mid-May due to a relative lack of liquidity. WithGasMart/Power ’98 in New Orleans in the last half of this weekimmediately followed by the New Mexico trade fair in Santa Fe earlynext week, a lot of traders will be away from their offices for awhile. Many will term up their gas for as much as a week ratherthan deal with it from hotel rooms or the exhibition floor, theproducer said.

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