Prices in nearly all markets outside the Rockies moved a littlehigher Tuesday, but late retreats at many points indicated theaftermarket upticks fueled by producing-area heat may be subsiding.

Initially prices were higher based on Monday’s late strength, aGulf Coast producer said, but after many traders held off for awhile “things started trickling down.” It also seemed that a lot ofthe LDCs that had been buying gas Monday were turning into sellersTuesday, “and that kind of woke everybody up,” he added. While heatin the South is lending some price support, lack of cooling demandin the East is pretty much offsetting it, the producer said.

One source pointed out how weak Appalachian/Northeast citygatebasis from Henry Hub has gotten in the short duration of the Juneaftermarket. They were little more than a nickel apart Tuesday, hesaid, primarily because Northeast storage is so close to beingfull. After an early deal Tuesday in the mid $2.20s, ColumbiaGulf-mainline (Rayne) fell almost a dime after people caught on tothe fact that TCO pool gas was priced about the same and was muchcloser to the market area, a marketer said.

Another basis note was Houston Ship Channel trading about anickel above the Hub. Look for that to continue as long as Texasremains in the grips of a heat wave, one source told Daily GPI.

Only a few deals got done as the Midcontinent started off higherin the mid $2.10s, a producer said. Later quotes fell as low as$2.05 before recovering to the $2.10 area, he added. Cooler weatherheading for the area could bring prices back to index levels, hethinks.

San Juan-Bondad is starting to trade more actively at fixedprices because of the growing spread from the Rockies, according toa marketer. It takes about 6.5 cents to move Rockies gas into theBondad pool via Northwest, she noted, and the current spread isoccasionally surpassing 10 cents, allowing a good trading margin.

The West Coast market is likely to be quiet for the rest of theweek as a number of traders attend a PG&E GasTransmission-Northwest shipper meeting in Portland, a marketersaid.

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