Some traders were getting a sense of deja vu all over again(thanks, Yogi Berra) as a second straight week started withdouble-digit price increases nearly across the board. The biggestgains on either side of 20 cents were concentrated at Northeastcitygates. Despite forecasts of snow and cold weather in theRockies, several increases of about a dime were experienced bypipes there. And although its rise of a little over a dime wasamong the day’s smaller ones, the PG&E citygate topped all U.S.pricing with quotes solidly in the $3.30s.

Although the November futures contract fell about a nickelyesterday, one marketer thought its ability to keep rising stronglyFriday after cash activity had been completed gave cash a strongunderpinning Monday. However, for most sources it was weatherfundamentals providing the most price support. Although it wasn’tquite as cold Monday in the Northeast as had been expected,utilities there were looking ahead to temperatures continuing todrop and stocking up on gas appropriately, a Gulf Coast producersaid.

Meanwhile, a Houston-based marketer said demand remained strongboth in the West, where California was still pretty warm, and inthe Midcontinent’s upper end, where overnight freezing temperatureswere in forecasts for much of the Upper Plains. Utilities werebuying heavily in Northern Natural’s market area, keeping thespread between Ventura and Chicago tight, said another trader(Chicago citygates were running about a nickel above NNG-VenturaMonday).

Something that could take a sizeable bite out of western powergeneration load toward the weekend is the expected return on-lineof nuclear units at PG&E’s Diablo Canyon plant and theWashington Nuclear Project, a marketer said. Those are the West’sonly two significant nuclear outages remaining, he said.

In contrast to the strong utility demand being reported in otherregions, there was virtually no utility market left in Texas, onetrader said. The weather is just too pleasant temperature-wise foreither heating or cooling load, he told NGI.

Hurricane Irene remained a non-event for gas, staying out to seaand posing a threat to North Atlantic shipping rather than the Gulfproduction area. The latest appearance on the hurricane seasonhorizon was by Tropical Storm Jose, which was about 270 miles eastof Barbados Monday afternoon and moving to the west-northwest, theNational Weather Service said. Jose could become a hurricane todayor Wednesday, the NWS added.

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