The futures screen “fell like a rock” Monday and, of course,cash prices then had to do likewise, said a Gulf Coast producer.Some points were essentially flat, such as Northwest (both domesticand Sumas) and NorAm-east. Others dropped 2-9 cents, with declinesof a nickel most common. Activity was fairly light, especiallysince some traders hadn’t returned yet from the holiday weekend, amarketer noted. But what prices lacked in volume they made up involatility as a number of points saw double-digit ranges. Onesource said his Chicago deals went from $2.64 early on to $2.49 atthe end.

With mild weather prevailing in Texas, there were few buyersaround, a producer said. He was even seeing some people that hadbeen buying for storage drop out of the market at leasttemporarily. But on the other hand, a San Antonio source wasfinding no demand for anything other than storage right now,adding, “Our weather is amazing.”

As usual traders were in disagreement over which way prices gofrom here. One said she hadn’t anticipated Monday’s softness, so itwas hard to call a direction for later this week. Others werecertain of further declines for at least a day or so. A marketersaid although Katy and Waha fell only a nickel Monday, late offersof $2.42 and $2.35 respectively for the two points convinced himcash will come out weaker today. He wouldn’t be surprised if Katystarts out at $2.37 to keep “the dime discount to the screen. Thatdepends if cash is able to fall one for one with the screen.” ANortheast-oriented marketer was seeing early TCO numbers in the low$2.70s, but later “had people begging me to take their gas as$2.68,” and also reported seeing an afternoon electronic tradingsystem deal on TCO at $2.62.

But then there was the marketer who didn’t see “a whole lot ofdownside from this point,” remaining bullish especially in themedium to long term. He saw the market as taking a little breatherafter last week’s run-up.

Although PG&E citygates joined the overall crowd in fallingonly about a nickel, a number of the utility’s customers were upsetthat after having an undersupply OFO in effect last Thursday (seeDaily GPI, April 9), PG&E abruptly shifted into reverse on GoodFriday and declared an oversupply OFO for Saturday and Sunday (seeTransportation Notes). One marketer said, “We were OK because wehad stayed pretty close to zero imbalance the whole time,” but heknew of other traders who had trouble swapping volumes around.”It’s too bad PG&E couldn’t get its act together any betterthan that.”

Another source considered himself fortunate in having to cutsuppliers at the citygate by only small volumes over the weekend,but added, “I can imagine the angst it caused some of the biggerplayers. How can a system that delivers 4.2-4.8 Bcf/d go from anunderdelivery situation to an overdelivery situation in two days?They [PG&E] really perturbed some people by offering’as-available’ [storage] injections over the weekend.”

A marketer expects the Northeast/Eastern Canada markets to bevery quiet for the rest of the week due to the concurrent TorontoGas Fair and a Columbia customer meeting in Pittsburgh.

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