Cash prices turned in mixed results Wednesday, with easternpoints mostly eking out small gains while the West tended to beflat to off as much as 3 cents in the Rockies and at the two mainNorthern California price points.

The screen gave a little support to cash, although aChicago-oriented trader said most of the futures rally came afterthe cash market closed. But it was mostly the heat wave moving intothe Midwest after plaguing the Northeast earlier this week thatkept prices on the rise, sources said. Gulf Coast traders reportedmoderate increases in power generation load, and demand fromFlorida was strong enough to prompt an OFO declaration by FloridaGas Transmission (see Transportation Notes).

The impact of air conditioning load was more pronounced in theMidwest, where citygates registered some of Wednesday’s biggestgains of up to a nickel. Michigan and Chicago deliveries returnedto the vicinity of indexes in the low to mid $2.30s. In addition topower generation demand, one marketer perceived storage injectionsas still running strong and supporting prices.

However, a large producer labeled AGA’s report of 78 Bcf instorage injections last week a “non-event, in my opinion.”

Weather is “quietly” supporting the market, asserted a GulfCoast marketer. Although current heat isn’t as extreme as it wasover the Independence Day holiday weekend, he said, the Midwest andMidcontinent are experiencing the longest period of sustainednormal and above-normal temperatures yet this summer. Basis, bothfor next month and next year, is reacting accordingly by moving up,he said. “Basis offers are getting lifted as opposed to bidsgetting hit.”

An intrastate Texas trader said he was making a lot of callsabout August business “but not getting any response yet.” Manysuppliers were still trying to put their August production figurestogether, he said. Meanwhile, bid and offer numbers appear to bemore than a penny apart, the trader said, and he was hearingHouston Ship Channel basis at plus 1.75-2.

A producer reported making Panhandle Eastern basis sales atminus 9.75 Tuesday and at minus 8.5 Wednesday, but said basis waswidening again Wednesday afternoon. He was hearing fixed-pricenumbers around $2.16 for Panhandle and NGPL-Midcontinent. A westernsource agreed that basis was widening as the screen went higher. Hepegged Sumas and Rockies pipes in general around $1.98-99 and Malinat $2.18.

Basis action was mostly tighter Wednesday to a Midcontinentmarketer who saw ANR trading at minus 8.5-9.5. Index premiumsstarted to show up, he said, citing an ANR sale at index plus 0.75.Even though prices have been below index for most of July, themarketer said, “buyers are acting like they need to own the gas inAugust and don’t want to get caught short.”

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