This week’s run-up in cash prices apparently hadn’t run out ofsteam completely Wednesday, but most of the new increases weresmall, and several points either flattened out or, as in the caseof Northern Natural-demarc and Chicago citygates, were starting toretreat from their previous heights.

The most spectacular price movement by far occurred in Northeastcitygates, where the value of delivered gas under what may be thiswinter’s coldest conditions was such that Texas Eastern M-3 andTransco Zone 6 quotes were jumping by a quarter or so into the$2.90s. A couple of reports even surpassed $3.

“This cold front is hitting most of the country and is a lotstronger than anybody gave it credit for being,” so cash iscurrently outstripping the futures screen, a Gulf Coast marketersaid.

For some, volumes were somewhat on the thin side since much ofthe trading community was attending Houston Energy Expo. But aHouston source who ignored the trade fair begged to differ, sayinghe was seeing a lot of buying demand from LDCs who held back duringbidweek, not expecting a winter storm like this week’s. And amarketer whose lower Midwest market area was experiencing heavysnow said he probably did more daily trading than ever before.

Due to the fair, a lot of skeleton crews are handling the cashmarket now, and their relative inexperience may be keeping priceshigher than they would be otherwise, a marketer said. The tyrosusually try to trade early in the day before the market directionis well established, he added.

Sources were divided on whether cash firmness can be sustained,but most of those who trade at Western points agree mild weatherthere should cause prices to come down fairly soon. A source whoseintra-Alberta deals softened a bit into the low C$1.70s said itappears the province is thawing out faster than much of the U.S.,since Calgary temperatures were getting above freezing again.However, a marketer reporting 12-degree temperatures in westernPennsylvania Wednesday morning said such conditions were expectedto last into the weekend. And a Gulf Coast trader said he expectscash to hold up again today.

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