The cash market took something of a breather Tuesday followingthe breathtaking uprising that began the week. Several pointscontinued to rise but by decidedly smaller amounts than on Monday.Flat to slightly higher was the general rule, but Rockies numberswere falling as supply outages neared an end and mild weather inthe Western U.S. continued to depress demand. Malin and theSouthern California border also fell by small amounts.

Everybody seems to be surprised by the cash strength, aMidcontinent trader remarked. Others agreed. It’s mostly Gulf Coastheat driving the market right now, said a Northeast-orientedmarketer. The Northeast has warmed up since last week but remainsrelatively mild compared to the South, he said. Nonethelessmarket-area prices have been pushed up by production-area powerload.

A marketer took the slowdown in price upticks as a sign that”things have settled down a bit because everybody’s waiting for thestorage report.”

A Texas intrastate marketer said Katy and Waha prices “reallypopped up at the end” with a few utilities getting caught shortlate. Another Texas trader said the strong intrastate demand iseven bleeding over into July business with Houston Ship Channelbasis at plus 2.

One source reported general Midcontinent basis at minus 11.Another reported early July fixed prices at $1.93-95 for Malin,$1.75-80 for the Rockies in general and the mid $1.40s for Sumas.

A Gulf Coast/Northeast trader sees basis “getting a lot strongerfor winter” but not as much so for the July-August period.

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