The cash market both calmed down and went further down in mostcases in Thursday’s activity. A majority of points ranged from flatto about 30 cents lower. The notable exceptions were declines ofabout 40 cents or more in California and Transco/Texas Easterncitygates in the Northeast, and on the opposite side of the coinwere gains in the Pacific Northwest and on some Rockies pipes.

Several sources detected a general feeling of relief that themarket waters were getting more placid again after having beenroiled by large daily gains and/or losses since the beginning ofDecember. “Instead of dollar-plus movements, we’re getting down tonickel and dime and quarter stuff again,” a marketer said. Withcontinuing softness, it seems ridiculous to say that Midwestcitygates on either side of $7.50 are “weak,” he added, “but that’sthe situation we’ve gotten ourselves into.”

Rockies prices were lower overall, but there was an upward trendas trading proceeded, one marketer said. She quoted Kern River-Opalas rising from $6.65 early to $6.84 in a late deal.

It’s been almost a month since Pacific Northwest prices weresolidly under $10. On Wednesday it appeared that Sumas, Stanfieldand Kingsgate were heading for the shady side of $10 again, atrader observed, but Thursday’s advances had Sumas and Stanfieldaveraging in four digits again despite some sub-$10 quotes.

One marketer in the Midcontinent region noted that severalend-user customers have switched to alternate fuels. “They’ve saidwhat it will take for them to return to gas is prices under $7.50at the burnertip,” he said. At this point, with high field pricesboosting pipeline fuel charges, “we’re still a good 30-40 centsfrom getting them back.”

Even with prices falling since Monday, stiff fuel costs alsowere a sore point with a Northeast trader. He said he didn’t do anydeals all Thursday because variable costs from the Gulf Coastwouldn’t work, “so I stranded my transport and ‘ate’ the demandcharges.” The Texas Eastern (Tetco) fuel charge has gone up”astronomically” to 80 cents or more, he said, quoting anapproximate range of 9% in the East Louisiana pool to 11.5% in theSouth Texas pool. He said Transco fuel costs are only about half ofTetco’s “because Transco is a more efficient pipe.” That prettymuch makes Tetco a swing transporter, he said; traders tend toprefer Transco “unless it gets real cold [in the Northeast] and youneed to use both.”

A screen switch from positive in the morning to negative in theafternoon, combined with moderating weather in most markets and thenormal dropoff in weekend load, is likely to drive prices stilllower today, a couple of traders agreed. However, bulls can takesome encouragement from the National Weather Service’s latest six-to 10-day forecast, which calls for below normal temperatures inroughly the eastern two-thirds of the U.S., where a majority of thenation’s population resides.

©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.