This week’s price slide almost, but not quite, came to a haltWednesday. Some points were flat and a few managed small upticks,but those were outweighed by small declines that only rarelysurpassed a nickel.

A marketer was mystified by the slight gains at Transco Zone6-NYC, where prices started in the mid $3.80s and rose eventuallyinto the low $4.00s. After all, Northeast temperatures remainfairly cool for this time of year with little prospect of animmediate warmup, and the August futures contract was basicallyflat until the afternoon storage report, he noted.

AGA said 54 Bcf had been put into storage last week, and likethe previous week’s figure, the lion’s share of injections occurredin the Consuming Region East. But while eastern injections seemedto placate Nymex traders into sending the screen lower a week ago,this time they drove futures prices nearly 20 cents higher at onepoint before eventually settling for an advance of slightly morethan a dime.

The screen strength will lead some traders to expect cash tostart rallying today, but one had his doubts. There’s still been nosignificant weather shifts, he said; if anything, the price trendshould be negative because some previously very hot areas such asthe Southeast and West Coast are cooling off a bit. It’s kind of atoss-up over where cash will go, he added, “but I’ve got thefeeling we’ll keep going down until some weather comes along.”

PG&E citygates recorded Wednesday’s biggest drop of about 15cents as California’s heat wave problems continued to subside. Thestate’s Independent System Operator had found it necessary todeclare a Stage One Electrical Emergency late Tuesday afternoonfollowing a failure of the Pacific Intertie, which carries powersouthward into California from the Pacific Northwest. However,Intertie transmission was restored Wednesday and the ISO did notissue any further power alerts of any kind.

Waha widened its small price lead over Katy slightly, noted oneTexas trader. She thought Waha numbers were still getting a boostfrom heat in east-of-California markets, while Katy was a bitweaker because of air conditioning load subsiding slightly inTexas. In turn, Katy is trading at virtual parity with the HoustonShip Channel because no gas is coming to Katy from Waha, shecontinued. In fact, it was economically feasible to backhaul gas onOasis from Katy to Waha.

After starting the week with a rare exhibition of runningcontrary to the screen, the intra-Alberta market was back to itsold ways again, a Calgary source said. Numbers started in the lowC$4.00s and got to around C$4.20 before falling back, much asfutures made a late retreat, she said.

A marketer trading the Chicago citygate for August at basis ofplus 6 and at fixed prices in the low $3.80s said there seems to beplenty of supply being offered. It’s definite that August indexeswill be down substantially from July’s, he said. He reportedgetting offers of gas at NGI’s Chicago index minus half a cent.

One trader said Transco Zone 6-NYC basis had shrunk slightly toplus 34. Another said Southern California border basis was as highas plus 89 early Wednesday morning but fell to around plus 75 afterthe AGA report and subsequent screen rise.

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