“If you want higher gas prices just wait for the next shouldermonth,” was the phrase bandied about the cash market yesterday ascash prices rose to heights unparalleled since last October andNovember. Last Autumn futures prices peaked at $3.85 beforefree-falling down to settle at $3.266 at the end of October. Now afutures led rally has pulled cash prices with it leaving the marketto wonder how much higher can prices go and will they come down.”That is the $10 million question,” a source quipped.

“Which pipeline blew up?” was the gut reaction a Rockies traderhad upon seeing the dramatic price move in her region. AnotherRockies trader went on to explain gas is very short from the firstof the month and the West is seeing little reprieve from the belownormal temperatures.

A twenty-cent price move at Malin was only bettered by a near30-cent spike at the PG&E Citygate yesterday. Buyers wereprevalent at each price level at the citygate on Wednesday to avoidpenalties associated with an Operation Flow Order (seetransportation notes) issued by PG&E for gas to flow April 9th,sources said.

A Houston marketer blames forecasts calling for a hotter thannormal summer for the price movement. “Tuesday’s futures spike andthe resulting follow-through exhibited in the cash market yesterdayis clear indication of market sentiment toward this summer. Theoverriding mentality out there right now is this summer is guiltyuntil proven innocent.” However, he is unsure of how much more thismarket can ascend. “Not quite everyone in this market is scaredabout supply for this summer. Two large storage players said enoughis enough, and became sellers of their baseload gas from the firstof month. And why not, they are turning a 30-cent profit for justgoing a little long in April.”

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