Much like two Fridays earlier, the usual drop in gas demand thataccompanies business slowdowns over a weekend failed to have anegative effect on prices last Friday. Although it later fell morethan a nickel, an initially higher screen helped cash achieve gainsranging up to about a dime at nearly all points. Only San JuanBasin, the Southern California border and PG&E citygateregistered losses, and those were small at 3 cents or less.

A Gulf Coast trader was typical of sources in repeating that hecould find no legitimate reason for prices continuing to rise.”We’re seeing very little power generation load,” he said. AMidcontinent marketer suggested that “a little” heating demandmight be developing in some areas, but a look at the nationalweather map proved that any such demand must be minuscule.

Another trader reported his motto for the situation of risingprices in the face of weak fundamentals: “I don’t know why; I justbuy.”

Florida Gas Transmission and Northern Natural Gas were a studyin contrasts. Both had market-area OFOs in place for the weekend(see Transportation Notes), but FGT’s was to guard against lowlinepack while NNG’s was in anticipation of potential excesssupplies.

In a possible sign of the change of seasons, neither PG&Enor SoCal Gas had high-linepack OFOs in place going into theweekend.

Calgary traders woke up Friday morning to find snow on theground. Perhaps that psychological signal had something to do withintra-Alberta prices getting back above C$3 into the C$3.00s andeven C$3.10s, one source said. However, she added, “It’s still tooearly to plan a weekend skiing trip.”

Few traders wanted to commit to anything for October other thanbasis or indexing Friday. It was hardly surprising that peoplepreferred to wait until Monday or later to begin bidweek businessin earnest, a marketer said. “All kinds of market conditions canchange over a weekend.”

One trader reported developing October basis of minus 0.5 forMRT-mainline and minus 4 for the pipe’s west leg. Another washearing the Southern California border at plus 6. Fixed-pricequotes were almost non-existent Friday, but a western source washearing numbers of $2.52-55 at Malin and $2.30-33 at Sumas. Amarketer said he had bid Questar at $2.25 but was hearing offersthere as high as $2.29.

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