The April aftermarket was off to a very strong beginning inswing deals done Wednesday. Virtually every point was trading abovebidweek levels and in some cases much higher. For example, a buyerwho paid in the mid $1.70s for April baseload at the SouthernCalifornia border reported a $1.90-95 swing range. Most sourcesagreed that the incremental price strength derived almost entirelyfrom “following the screen” upward.

But as a producer observed, “Everything looked like it was goingthrough the roof until the AGA report came out.” He was fairlycertain that the anemic figure of 37 Bcf in withdrawals last weekwould soon deflate April’s early price run-ups.

Indeed, even before the report was issued, there wereindications the cash market’s bullishness was starting to run outof steam. Incremental numbers followed futures higher for much ofthe morning, one trader said, “but by about 11 p.m. CST prices justtanked.” Chicago citygates that had been in the $2 area earlierfell to about $1.90, he said. And a Midcontinent producer saidPanhandle Eastern backed off to $1.80 after running up to $1.87.

A marketer believed some of the late softening resulted whenbuyers had covered their positions. “After that there were just nobuyers to be found,” he said.

Although most deals appeared to be for the 1st only, some peoplewere also trading for the April 1-5 period because they have theGood Friday holiday off, a marketer said. The five-day pricestended to be a little lower because of some doubt about how weekendconditions would develop, he added.

A source who had traded Sumas mostly in the low $1.50s duringbidweek reported swing deals that ran up from $1.56 to a peak of$1.70. A bit of colder weather in the Pacific Northwest and thestart of storage injections served to tighten supplies at Sumas, hesaid.

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