Although it didn’t seem likely as recently as the middle of last week, the market may be on the verge of a much-anticipated turnaround from its long slide. Except for Rockies/San Juan and California border-SoCalGas declines, Monday’s trading saw flat to moderately higher prices at most other points, and much higher ones at PG&E-related points struggling out of the abyss into which they had plunged following Friday’s stringent OFO.

A fairly strong screen rebound of nearly 12 cents helped point the way higher for eastern prices, a Gulf Coast marketer said, but some fundamental support also played a role. “We’re starting to feel the heat in the form of calls for more gas from [Southeast] electric utilities” as they find their air conditioning load on the upswing, he said.

By next week air conditioners could also be buzzing in other regions. The latest six-to-10-day forecast from the National Weather Service projects above normal temperatures for early next week in all parts of the United States except its extreme Northeast and Southwest corners.

The Northeast is feeling a bit of unseasonable chill currently, but it’s having little impact on gas prices, a trader in the region said. That’s typical for May in the Northeast “when there’s usually not a lot of weather going on,” he said.

With the screen continuing to rise above its regular-session close of $4.394 in Access activity, several sources believe cash will also build on Monday’s gains today.

With a high-linepack OFO due to be extinguished today, the three PG&E-related California trading points easily managed Monday’s biggest advances. The citygate “traded all over the place” between $5.00 and $6.00 after starting high, going lower, then moving higher again, a marketer said. Northern California temperatures were getting comfortable, with San Francisco Bay area readings in the low to mid 70s, he said.

That same cooling off of the Golden State after last week’s mini-heat wave sent border-SoCalGas quotes lower by about 80 cents as power generation demand waned, a western trader said. The weaker power load was about the only rationale some traders could find for why border basis for June “came off extremely hard” to plus $6.00-30 after trading around plus $7.50 Friday, he said. Similarly, Malin basis crashed to below a buck after trading at more than plus $2.00 Friday.

An entitlement and OFO by Northwest (see Transportation Notes) had the predictable effect of depressing south-end prices on the pipe, and the weakness spread to other Rockies pipes. But just as predictably, Sumas and Stanfield quotes rose about 20 cents each because of the limit on northbound Northwest flows through the Kemmerer (WY) Station constraint point.

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