In a break from the usual price downturns associated withend-of-the-week gas trading, many markets points posted no gain orsmall increases Friday. Northeast points were the notable exceptionas expected wintery weather for the weekend caused significantprice jumps.

A Chicago-area trader said she was a buyer early Friday becauseprices were still below first-of-month index. Buyers who waited,she continued, were not as fortunate because prices rose steadilythroughout the session and actually traded above NGI’sfirst-of-month level at $2.68. Although the screen dropped offFriday afternoon, its strong open aided cash market strength, shesaid.

Forecasts calling for cold weather to return to the NortheastSaturday sent market prices higher as utilities called on theirpeaking loads rather than hit their storage. “I think that afterpulling so much gas over the last two months they are starting tothink about operational concerns and the possibility of storagebecoming depleted before the winter is over,” one trader said.

But while it paid to be a buyer early at Chicago, you wererewarded for waiting at New York citygates, because prices theretumbled lower after the initial spike. Tetco M3 traded as high as$3.60 but fell to just above $3 late. Transco Zone 6-NY tradedaround $5 before dropping in late morning deals.

A system overrun limitation called on Northwest Natural’s entiresystem for gas day Friday and Saturday caused some added pricefirmness when compared to other Midcontinent pipes, one sourcesaid. He quoted Panhandle in the mid $2.40s, ANR in the high $2.40sand Northwest Natural Demarcation in the mid $2.50s.

A Rockies trader said there is some strength in that region aswell. Sumas didn’t really get much lower than the mid $2.30s andthen bounced into the high $2.30s. Opal was dropped into the low$2.30s, but was back up later into the high $2.30s as well. MostRockies points finished the day just shy of Thursday’s levels. Bydropping a nickel, El Paso (non-Bondad) was the lone exception.

In California, demand was reportedly on the rise Friday, thanksto slightly cooler temperatures expected for the weekend, onesource said. Both the SoCal Border and PG&E citygate had littleto no price movement from Thursday’s levels. Still, another sourcesaid: “Overall, the market out West is a lot weaker than the East.It seems like every time prices try to move above first of monthindex at the SoCal Border, there is a ton of storage gas dumped onthe market.

Despite the show of strength Friday, there were some thornsmixed in with the roses for the spot market heading into ValentinesDay weekend. Although it was released too late to affect cashprices, the National Weather Service six- to 10-day weatherforecast called for above-normal temperatures for what amounts tothe entire country.

“I think that report may stem these bullish feelings,” anortheast marketer said. “People have been holding on to their gaslately, hoping for another blast of cold so that they can reallymake a killing. This extended forecast might be enough to changetheir minds.”

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