Prices were generally a bit higher Wednesday as traders with heavy hearts struggled to resume business as close as possible to normal. There was a decided lack of consistency as production-area numbers ranged from mildly softer to about a dime higher, and market-area deliveries were similarly varied.

AGA’s report of 95 Bcf in storage injections surpassed most prior expectations and was seen as a bearish sign for prices. Naturally there was no Nymex reaction this time; few if any traders expect the exchange to return to action before next week. However, an offsetting influence to the storage report’s bearish nature could come in the form of Tropical Depression Eight, which was about 230 miles west-southwest of Naples, FL, Wednesday afternoon. The system was becoming a little better organized, the National Weather Service said.

BP was reported to be preparing for the possibility of evacuating offshore platforms if the tropical depression gets much closer. A complicating factor was the Federal Aviation Administration’s ban on flights following the terrorist attacks Tuesday, which meant BP and any other offshore producers would have to get FAA approval to transfer their workers to shore by helicopter.

Tropical Storm Felix was nearing hurricane strength but was still well out in the mid-Atlantic and heading north, which would keep it away from the U.S., NWS said.

Even without futures guidance, cash traders were able to get by with traditional phone calls and the help of on-line platforms such as EnronOnline, DynegyDirect and IntercontinentalExchange, all of which had resumed operations, a Gulf Coast marketer said. “They can’t lay off their risk through Nymex, but can exist without it.” The problem for the Merc is consistency, he said; Nymex doesn’t want to start up again only to have to risk shutting down unexpectedly every now and then as problems from Tuesday’s terrorist atttacks continue. Also, the Nymex people don’t want an open outcry system that usually has 140-150 participants, resuming when less than half that number can get to the pit, the marketer said.

A number of sources observed that volumes were much smaller than usual Wednesday as many traders did only the deals that were necessary. That was a reflection not only of very little cooling load outside the desert Southwest but also the tentativeness of resuming activity after Tuesday’s soul-shaking events. “It [cash market] is not even close to normal again in the absence of Nymex,” said a Midcontinent source. He also noted that many traders have gotten stuck away from their offices due to the terrorism-related cessation of U.S. air travel.

A Gulf Coast marketer said he detected a palpable lack of enthusiasm among traders Wednesday. “Even when people are trading physical forwards, they like the comfort of having Nymex to hedge against,” he said. Demand was extremely light anyway, he added, saying, “We don’t usually get this kind of nice, cool weather around Houston until late October or November.”

EnronOnline was quoting the mid $2.50s for October Henry Hub pricing Wednesday, according to a Midwest trader who said, “That’s about as close to a Nymex substitute as anybody has.” However, after yesterday’s big storage number, “I have to figure the real Nymex will be way below the $2.50s when it manages to reopen.”

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