The cash market managed to rebound Monday from the weekend’smild softness, but the bounce back up was small. Monday’s quotesranged from flat to almost a dime higher, with most of the upticksless than a nickel.

The largest increases tended to be concentrated in New Englandcitygates, where the weather had actually turned a bit chilly insharp contrast to the heat wave experienced a week earlier. Infact, there was little hot weather left anywhere in the U.S.outside of the desert Southwest and the Gulf Coast producingstates.

Several sources cited strong energy futures and/or storagebuying as the reasons for mildly firmer gas prices. The natural gasscreen rose a little more than 4 cents, and crude oil was startingto flirt with the $30/bbl level again. A Texas-based marketercommented that traders had used high power prices in the Northeastlast week to raise futures prices and added, “I wonder what theirexcuse is now.”

A large aggregator attributed much of Monday’s price strength tostorage purchases, citing the Appalachian pipes in particular.Although only barely higher on the day, quotes for CNG and Columbiawere not far behind Northeast citygates. “Everybody knows storageis short, so it’s kind of a big catch-up game,” the aggregatorsaid.

An electrical fire that caused the automatic shutdown of oneunit at PG&E’s Diablo Canyon nuclear plant had essentially noeffect on western prices, a marketer said. There might have beensome impact if California weather was hot, he added, but the entireWest Coast is ranging from mild to cool. He reported hearing theDiablo Canyon unit would be back in service by Thursday.

A marketer starting to get a jump on June business said generalMidcontinent/Midwest basis was weakening in response to futuresstrength. He reported bid-ask spread of plus 3.75-4.5 for Chicagoand minus15.75-15.25 for Panhandle Eastern.

©Copyright 2000 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.