Producers who may have been tempted to sing a few (paraphrased)bars of “It’s beginning to look a lot like winter” upon seeingTuesday’s weather reports probably stifled the urge after cashprices at most points fell by widely varying amounts. The softnessoccurred despite cold to very cold temperatures pervading almostevery part of Canada and the U.S.

Although few drops were much more than a dime in the Gulf Coast,the region had the day’s lowest price levels as some pipes inLouisiana and South Texas slipped into the high $1.80s. Prices werefalling even with several pipes in the area warning of potentialOFOs or similar actions to guard against supply shortfalls.

The Midcontinent was seeing smaller declines than the Gulf Coastand prices averaging about a dime higher largely because ofsub-freezing temperatures in the Midwest market area that wereconsiderably more severe than those in the Northeast. In additionwell freeze-offs were fairly widespread in the Midcontinent, withone large aggregator reporting them in the Texas Panhandle, NewMexico, Kansas and “pretty much all around Oklahoma.”

The new Northern Border deliveries into Chicago may have beenhaving an effect as citygates in the mid $2.00s were bare penniesabove field pricing.

Other well freeze-offs were reported in the Rockies, withsources mentioning Echo Springs, Shute Creek and Opal as beingaffected most.

Western prices were generally subsiding from the heights hitMonday during Northern California’s supply shortage. Quotes werestill $3 or higher at Malin and the PG&E citygate, but wereconsiderably less than on Monday. Permian and Waha numbers wereessentially flat to slightly higher due to El Paso’s UnauthorizedOverpull Penalty alert.

Sumas was the only point seeing a big increase of more than adollar Tuesday as top quotes hit $8. Sumas was boosted by aNorthwest entitlement against overtakes remaining in place andsupply losses in the Rockies caused by freezing wells.

A marketer perceives the January outlook, for both baseload andincremental gas, as unfavorable. “Unless we get some AlbertaClippers [windy cold fronts] coming out of Canada, the weatherdoesn’t pose much of a threat,” he said. Furthermore, buyers are ina comfortable position for the first weekend in January, themarketer added. New Year’s Day falls on a Friday, so their gas willalready be termed for the first four days of the month and thusthere probably will be little need to buy swing gas for the holidayweekend. “That could make gas plentiful and set the tone for themonth,” he concluded.

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