The cash market was stronger by varying degrees Tuesday withprice movement ranging from flat to about a dime higher. Butsources didn’t expect the firmness to last, since many points wereheading back down along with the screen in late business. Theiroutlook was reinforced when the June futures contract continued todrop in afternoon Access activity.

“Screen hype” made big numbers get bandied about early, said aMidcontinent marketer, but cash actually got below Monday’saverages in late deals. However, enough business got done at theearly higher levels to generate an overall market rise. He reported$2.16-17 pricing for the Midcontinent pipes but said they latertraded in the low $2.10s. It was a good day for selling early andthen sitting back and being patient enough to wait for purchasesseveral cents lower, the marketer said. “I call it waiting for theK-Mart ‘blue light special.'”

Though Wednesday’s price hikes were geographically diverse, thelarger upticks again tended to be concentrated in the West. Chillyweather in the Rockies and supply constraints in San Juan Basincontinued to support prices in those regions, traders said, but awarming trend for the Rockies and western Canada is expected by theweekend.

Northwest’s Green River Compressor Station is just 20 MMcf/d shyof capacity, a Rockies trader said, which tells him there is a lotof gas on the pipeline going south to storage. He also thinks asupplier is selling gas only when the price goes above index andputting it into storage otherwise, taking significant volumes offthe market at times.

After trading at a Midcontinent premium for a while, ONG hasfinally settled back into the interstate pack. Late-month balancingconcerns on ONG caused the intrastate’s relative strength, whichcarried over into early May, one trader said. But for now peoplecan “play around with balancing their gas as they want,” he said.He expects at least a modest ONG premium to return near the end ofMay.

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