“Fundamentals are bearish, technicals are bullish, and today[Tuesday] the bulls beat the [socks off] of the bears.” Rather thandescribing a pro sports encounter between two Chicago teams, aHouston-based aggregator was summing up his view of the physicaland futures gas markets. Led by a soaring screen that dazzledobservers with its pyrotechnics (“this is crazy,” exclaimed onemarketer), cash prices were rising by a dime or more at nearly allpoints in the face of continuing widespread mild temperatures.

Monday’s biggest gainer, the PG&E citygate, was a rarepoint Tuesday in not seeing any rise. PG&E did not extend alow-linepack OFO beyond Tuesday.

Intra-Alberta quotes ranged throughout the C$2.10s and likelywould have generated bigger increases at Stanfield, Malin and otherrelated points if those other markets hadn’t quit trading early, amarketer said. Alberta trading isn’t subject to U.S. nominationdeadlines and goes on throughout the day, and the higher $2.10sdeals were occurring in the afternoon, he added. Based on theintra-Alberta and futures strength, he expects numbers at Malin andPacific Northwest points to go up 20 cents today.

One trader said a storage play was buoying cash numbers at HenryHub. And a Gulf Coast producer noted that many people are stillscrambling to make up imbalances caused by the production outagesof Hurricane Earl and Tropical Storm Frances. Those efforts may geta setback if another storm comes into the Gulf soon, which is quitepossible, he said.

After a relatively sedate (production-wise) first half of thehurricane season, it seems that something is constantly happeningin that area in September. As of Tuesday, two developments were onthe horizon. The stronger one, Tropical Depression 7, was muchfarther away, being about 400 miles southwest of the Cape VerdeIslands at midday, according to the National Weather Service. NWSsaw favorable conditions for TD7 to develop into Tropical StormGeorges within 24 hours.

Of more immediate concern to producers and gas traders was adisturbance near western Cuba that could become a tropicaldepression today or tomorrow. It already was sending rains and windinto extreme southern Florida. And although Frances no longerexists, its rainy vestiges in Texas and Louisiana continued toremind Houston traders of their harrowing day in last Friday’sflooding.

Despite the incremental strength, one source said Chicago basiscontinues to weaken. He was being offered citygate gas for Octoberat plus 2.5, down a full point from late last week. Michigan basisalso is softening, he said.

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