The cash market lost some ground Tuesday, again defying sources’pre-holiday expectations of a rebound from last Thursday’s pricerout. Except for PG&E citygates and intra-Alberta-each upalmost a nickel into the high $2.20s and low C$2.00srespectively-and small gains at a couple of other scattered points,quotes registered as flat to down 5-7 cents.

There is just too much supply up for grabs and Northeast weatheris too mild to support price increases, a Gulf Coast marketer said.And although the Gulf Coast and Midcontinent producing statescontinue to experience scorching weather, it’s not enough to movethe overall market, he added.

However, a Texas source still believes there is a chance of aturnaround starting today. After a long holiday weekend, it usuallytakes a day or two for the gas market to shake out and get into arhythm again, he said. Also, since many pipes were cautioningshippers before the holiday against banking gas on the system, it’snot surprising that they would have some extra linepack to shedMonday and Tuesday, he said.

The Rockies were giving back much of the price increases theyhad seen on Monday. Permian Basin and Waha gas, which recently havedepended on Midcontinent and intrastate Texas cooling load to avoidthe general softness pervading Western points, fell by a littleover a nickel Tuesday.

A marketer was mystified about why there was so little utilitybuying in the Southwest and Rockies “because there seems to beweather out there. We had 100-degree temperatures in the Southwestall the way from Southern California into Arizona.” Sources saidthe lack of utility demand was why San Juan gas took the day’sbiggest price hit of more than a dime.

Although an area of disturbance in the western Caribbean Sea haddeveloped into a tropical wave, weather analysts were discountingchances of it getting any stronger. They expected it to head forMexico’s Yucutan Peninsula and parts of Central America.

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