October futures managed to achieve a moderately strong recoveryFriday but apparently there was too much negative baggage left overfrom Thursday’s quarter-plus plunge to support cash. Physical gasprices continued their downhill slide, buffeted by the combinationof weak holiday weekend demand and mild weather virtuallyeverywhere. “Cash just didn’t stand a chance today,” a marketersaid.

Eastern prices fell by varying amounts ranging from about anickel to 20 cents or so. But the biggest bear rampages wereconcentrated in the West, where several points were down by morethan 20 cents. San Juan Basin quotes were just shy of recording thefirst sub-$2 pricing since July. An aggregator reported most of hisEl Paso-Permian deals in the mid $2.20s but said he was able topick up a late package more than a dime lower.

Not only have prices taken a long and fast dive from where theytraded during bidweek, but many eastern points were as much as 15cents or more below August(!) indexes Friday.

Cash numbers spent the morning realigning themselves with afutures market that lost nearly 10% of its value on the previousday, a Texas marketer observed. By afternoon, however, there was agrowing perception among traders that this week is likely to bringrising prices again, she said. As a result, the marketer went on,many people long on supplies were playing the “park and lend” game.The idea is that it’s worth paying a pipeline’s parking fee for nowin order to have that gas available when prices are moreadvantageous.

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