Mostly moderate price declines concentrated in the Gulf Coastand Northeast were outweighed Wednesday by small to large increasesin other markets. The biggest gains were in California and theRockies/Southwest, while Transco Zone 6 (NYC) took the biggest hitof 65 cents.

The Southern California border spent only a day averaging less than$10 for the first time in nearly two months (see Daily GPI, Jan. 10) before climbing more than a dollarto back above $11. Not only was the state being lashed by a Pacificstorm bring blizzard conditions to the mountain areas, but theIndependent System Operator again was declaring a Stage One ElectricalEmergency Wednesday after having proceeded to a Stage Two alert lateTuesday afternoon. Malin and PG&E citygate quotes were up stronglyas well.

Meanwhile, sources expected most if not all markets to weakensubstantially today based on the highly negative Nymex reaction toan AGA report of 167 Bcf withdrawn from storage last week. “Nodoubt about it,” said one. “Cash prices will go into the dumpster.”The only thing that will bring cash back up is a return of muchcolder weather to the northern market areas, he added, “and I don’tsee that happening before next week at the earliest.”

However, the National Weather Service wasn’t offering muchsupport for that prediction. In its latest six- to 10-day forecast,it predicted most of the western third of the U.S. will see belownormal temperatures, but normal readings will dominate in the restof the nation except for above normal temperatures in parts of theUpper Plains and Upper Midwest.

Actually the Midwest, though currently experiencing weather inthe vicinity of freezing, is above normal for this time of year,said a Chicago citygate trader. Usually temperatures would be inthe teens or even single digits around this time, he said. Hereported seeing “plenty of people selling but not that many buyers”at the citygate Wednesday.

As often happens, all-day intra-Alberta trading tended to followthe screen, which was moderately weaker during the morning butplunged to an eventual loss of 69.1 cents on the day after thestorage report came out. A marketer said he sold an intra-Albertapackage in the high C$12.80s in the morning but was able to buy itback later at C$12.20.

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