Cash prices plunged as expected Thursday, with nearly everypoint in all markets down between 20 and 30 cents.

With a decline of only a little more than a nickel, the SouthernCalifornia border was a conspicuous departure from the overallweakness. One source explained the discrepancy by saying the regionis hot, electricity prices were strong and “we’re even pulling fromstorage.” Same-day prices on the California Power Exchange peakedat around $91/MWh. However, the border saw a very wide rangeThursday, and quotes designated as being into the PG&E systemat Topock were notably much lower than those into SoCal Gas.

There was a distinct geographical division in both Thursday’strading trends and what sources expect the cash market to do today.Eastern sources reported numbers trending higher as the morningproceeded, and they expect the screen’s eventual gain of 13.5 centsto be strong enough to outweigh lower weekend demand and cause atleast moderate price upticks today.

It was a different story out West, though. Not only were mostpoints moving lower Thursday, but the possibility of weekend OFOsin California “has everybody spooked and expecting further declines[today],” according to one marketer. PG&E was projectingabove-target linepack for Saturday and Sunday.

Intra-Alberta was a rare western point to move higher during theday. It is known to track futures movement closely, and that wasevident Thursday. One marketer rued waiting till late afternoon tobuy intra-Alberta at C$4.67, having missed lower prices in themorning.

Despite Thursday’s price drops, cooling load remained high inthe Midcontinent and Gulf Coast, traders said. “Every electricgenerator that I know of in Oklahoma, Louisiana and Texas was outshopping for gas,” one source said. Intrastate Texas demand at Wahawas strong enough to keep the point in a dead heat with Katypricing in the high $4.00s, he added.

A Midwestern trader was surprised at not making any Chicagocitygate sales. “I was sure that with prices falling as low as the$4.00s, some buyers would be calling me for gas there, but theydidn’t,” he said.

Sumas quotes registered one of the day’s biggest declines ofabout 30 cents, and a Rockies trader thinks it will be”interesting” to see what happens to Northwest prices in generalMonday when about two-thirds of Westcoast’s Fort Nelson Plantcapacity returns. Sumas prices are already running 40-45 centsbelow GPI’s July index of $3.99, he explained, and Fort Nelson’sgoing to be putting 400 MMcf/d or more back into the market. Hisobvious inference was that Northwest pricing will be very weak nextweek.

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