Except for some upticks in San Juan Basin and at Northeastcitygates (especially strong in both of Transco’s Zone 6 pools),late-December swing prices stayed on a downhill slide Wednesday.Declines ranged from mildly softer to more than $2 lower atStanfield, but most were within the range of 40-70 cents.

Although harsh winter weather remains in the near-term forecastfor both the Midwest and Northeast, only the Northeast respondedwith higher prices. “The Zone 6 pools [on Transco] were definitelywhere most of the action was,” said a marketer. New York Citydeliveries averaged less than $20, but spiked to a point-record$37, with quite a few $35 quotes also reported, as a supply squeezedeveloped near the end of trading.

AGA’s report of 175 Bcf withdrawn from storage last weekdovetailed nicely with prior expectations, but Nymex treated itbullishly to generate the highest contract expiration price ever.One cash trader commented, “That [175 Bcf] is a lot of gas, but notso much compared with how cold it seemed last week.”

Moderate San Juan gains of close to 25 cents combined with aSouthern California border plunge of $1.79 to reduce theborder-basin spread to less than eight dollars for the first timein many weeks. One trader said his swing Topock deliveries at theCalifornia border dropped about a dollar and a half to the$16.08-18 range, and January quotes fell by about the same amount.”Many people, myself included, felt that January SoCal border[prices] would come up to meet December. Instead, it appears thatDecember will be forced way down to converge with January.”

Fixed prices for January remained slow in developing, although awestern source said he knew of a PG&E citygate deal at $15.00.Basis was falling off more than the screen rose, a marketer said.

Because of the holidays, it seems like a considerably shorterbidweek than usual, a large aggregator said. He expected mostbusiness to be done Wednesday and today, with “mop-up” actionFriday. Friday trading will be complicated both by the rush to gethome for the New Year’s weekend and the split in flow periods, hesaid.

The Northeast was joining California in getting unusually largebasis quotes. One source reported Transco Zone 6 (NYC) at plus 550,Transco Zone 6 (non-NYC) at plus 350 and Texas Eastern M-3 at plus300. Appalachian basis also was rising for January, he said withCNG at plus 89 and TCO at plus 55. Meanwhile, a Calgary traderquoted Malin at plus 460 and the SoCal border at plus 645.

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