A Houston-based source characterized the situation: “People just have no idea where this market is going to settle.” That was telling it like it is Friday, as the July aftermarket began substantially below first-of-month indexes and even further removed from end-of-June pricing.

Several traders saw good reason to doubt that any turnaround is possible before next week, if then. Independence Day is one of the lowest demand periods of the year, and coming in the middle of the week, it’s likely to have some load-depressing effect on both Tuesday and Thursday also, a producer said. A weather rally isn’t in sight either. In its latest six- to 10-day forecast Friday, the National Weather Service projected below normal temperatures for most of the eastern half of the U.S., including the key Midwest and Northeast market areas.

The venerable Chicago citygate illustrated how weak the market has gotten by averaging below $3 Friday for the first time in more than a year. One has to go back to April 4, 2000 business to find the last time the citygate was gazing up at the $3 level from below. And although other Rockies points managed to stay on the plus side of $2, most CIG and Questar quotes had a “1” as the dollar-place numeral.

OFOs by both SoCalGas and PG&E (see Transportation Notes) punished California numbers. However, although border-SoCalGas got pushed down into the $3.70s in wide-ranging quotes, it did not yield its title as highest-priced point to Transco Zone 6-NYC Friday, as it had over recent weekends.

This week’s schedule won’t be routine for most Canadian traders. The Canada Day holiday was officially on Sunday but will be observed Monday (today), a Calgary marketer said, however, she and most others in the local trading community will put in at least a partial day at the office “because the Nymex will be active.” Wednesday will be a quasi-holiday for many in the gas industry because of the Independence Day celebration south of the border. Then since the rodeo parade Friday will kick off the Calgary Stampede; many Calgary sources will arrange their late-week business to eliminate or minimize trading activity Friday.

©Copyright 2001 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.