While the American Gas Association (AGA) report loomed at theend of Wednesday’s trading, moderate temperature forecasts and theeasing of New England and New York electricity jams were enough tocause drops of more than a nickel in the Northeast. The New Yorkcitygate ended the day in the mid $2.50s after ascending to the mid$2.70s on Monday.

Even before the AGA reported a 91 Bcf injection, one source wasunimpressed, saying the report’s influence has already been felt.”I think the whole storage movement has already happened. If itfalls anywhere near where people say it will fall, in the 75-85 Bcfrange, I think the report will have a minimum affect. The only wayit will have an impact is if it’s over 100 Bcf. If that happens,look for the screen to drop to the high $2.30s.”

A Texas-based trader guessed the AGA would report an 80-85 Bcfinjection but was more concerned about the other factors that wereinfluencing spot prices in Texas. “We’re not going anywhere rightnow.” With the moderating temperatures in the Northeast and no heatto speak of in California, Texas gas “isn’t moving like I want itto,” he said, quoting Houston Ship Channel prices in the mid $2.30sfor Wednesday, a couple of cents softer than Tuesday’s results.

Favorable forward spreads are making California buyers feel veryshort right now, a Houston-based marketer said. With June tradingat $2.30 at the California border and July at $2.40, it makes senseto buy spot gas for storage and lock in a profit next month.

In Canada, one trader said a delay in snowmelt due to coolweather is reducing the amount of hydropower in the PacificNorthwest and British Columbia. That, coupled with frost warningsin Calgary the past several nights, has kept Intra-Alberta gasprices strong. However, when it does finally heat up, she said theflood of hydro will displace gas burn for electric generation andprices should come off.

Price strength at Northern Natural Dmarc surprised one Midwesttrader, who cited ONG prices in the mid $2.20s and Dmarc average inthe low $2.30s. “I would have thought electric generation withinOklahoma would have put the intrastate pipes at a premium overDmarc, but so far that has not been the case.” He said Midcontinentprices rallied in the afternoon session yesterday.

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