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'Little More Heat,' & Screen Lead Cash Quotes Higher

'Little More Heat,' & Screen Lead Cash Quotes Higher

Nearly every trading point continued to build Wednesday on the slight degree of bullishness established on Tuesday. The majority of increases were moderate, within the range of 2-4 cents. There was "just a little more heat" to raise cooling load a notch higher, said a Midcontinent source, and the futures screen literally put in its 2 cents worth with a rise of a little over that amount.

The weakest market was in the Rockies, where several pipes were flat to a penny or two lower. One marketer said he did his first deals into Kern River at Opal for just over $2, "and no more than five minutes later a big seller emerged to push prices down." He reported three subsequent Kern River-Opal purchases at $1.96-98. The Rockies in general was coming off as trading progressed, he said.

The tendency was in the opposite direction for a Northeast utility buyer. It seems some degree of supply tightness has occurred late in almost every daily trading session recently, he said. His early Texas Eastern M-3 and Transco Zone 6-NYC purchases around $2.40 were followed by others at $2.44-45.

The Waha/Katy spread got about a penny wider than it was earlier this week, but at 4 cents it still was far from satisfactory to one marketer. He was trading Waha at $2.17-18 and Katy at $2.21-22.

The AGA's Wednesday afternoon report of 85 Bcf was on the low side "but not by much," according to a Midcontinent marketer. "It [the report] was neutral as far as I'm concerned."

Intra-Alberta pricing barely seemed to notice that as much as 800-900 MMcf/d was coming back into the market now that NOVA has finished its maintenance curtailment on the Western Alberta Extension. A trader quoting intra-Alberta at C$2.73-74 Wednesday, barely a penny or two down, thought a lot of the returning gas was being absorbed by storage injections.

Convergence was working pretty well for the above intra-Alberta trader. He reported doing both July and July-October baseload deals in the mid C$2.70s. But most people are still "real skittish" about doing any July deals prior to the Nymex settlement, reported a Northeast source who was getting Transco Zone 6-NYC basis offers of plus 19-19.5. A marketer said most of the Midcontinent talk he was hearing continues to center around index-flat deals.

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