Prices achieved broad-based small gains Tuesday largely based onan initially firm screen and lingering cool weather in the West,but were retreating in the late going as futures eventually movedlower.

Quotes ranged from flat to about a nickel higher in most cases,with only a few scattered points seeing increases of slightly morethan a nickel.

As usual, traders watched developments on the natural gasfutures screen with interest. But what really grabbed attentionTuesday was the action in the crude oil futures pit, where theApril contract soared by an astronomical $1.95 to settle above$34/bbl. Heating oil futures also posted a strong increase. “Peopleare just sitting here goggle-eyed at what crude is doing,” said astaffer at a large marketing firm. “Are you ready for $2 gasolineat the pump?”

Although it’s uncertain whether oil prices can maintain theirnew heights, it is certain that gas is growing more and morecompetitve with oil-based alternative fuels on a cost basis, amarketer said. Besides the OPEC situation, an oil workers strike inNigeria is cramping worldwide production, he added.

It was kind of a wild day in western trading, according to amarketer. Numbers started out strongly with the screen but startedeasing off almost simultaneously with the futures decline, he said.Prices in the Southwest basins came close to “collapsing” then, headded, but the Southern California held up more strongly because ofcontinuing cool weather in the state.

A Houston-based trader was puzzled about why he was paying morefor South Texas gas into Tennessee than he was in Louisiana, butthe same relationship did not hold true for Texas Eastern. Sincethere are no significant production-area constraints on eitherpipe, any extraneous conditions affecting South Texas suppliesshould apply approximately equally to both of them, he said.

An arctic front moving into the Upper Plains from Canada shouldhave residents in the area who had been enjoying unseasonably warmweather recently dragging out their overcoats again, a forecastingservice said.

Sable Offshore Energy confirmed that it has increased productionfrom five wells into Maritimes & Northeast Pipeline to about300 MMcf/d.

One source reported trading physical basis for April at theChicago citygate at plus 6-6.25.

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