The incremental cash market pulled off a double play asexpected: following up the screen’s storage report-based spikeWednesday afternoon with across-the-board double-digit gains of itsown Thursday morning. It was almost like watching a replay from aweek earlier.

If the natural gas futures screen had been a daytime TV soapopera, it would have gotten ratings to rival those of Who Wants toBe a Millionaire? among those in the industry. About all anybodywanted to talk about Thursday was how futures could continue todisplay such strength after soaring so high the previous day. “It’sa crazy market,” several traders told Daily GPI.

Most points registered increases of 20 cents or more in late-Maydeals. The ones falling a bit short of 20 cents were concentratedin the West. However, the PG&E citygate somehow managed to risenearly a quarter despite the utility projecting above-targetlinepack for today through Sunday.

“I never thought I’d be reporting Waha numbers over $4,” saidone marketer. “It certainly doesn’t pay to be short in thismarket.” However, she did say Waha and other western points weretrending modestly downward as the morning wore on.

“We’re getting into uncharted [market] waters now,” said asource who markets gas for a group of independent producers. Headmitted to having difficulty in judging where the market is goingfrom here, but added, “Our producers are real happy right now with$4 gas and $30 crude.”

He recalled previous years when prices would be starting to fallbelow $1.50 in the Gulf Coast around May and producers would betalking about shutting in their gas because of not being able tomake any profit on it. “Now they’re having to shut in $4 gas onoccasion because the pipelines have traditionally scheduled all ormost of their maintenance during the summer.”

Earlier this week most traders agreed that most June businesslikely would be wrapped up by this afternoon, but now they’re notso sure. Other than some indexed or basis deals, bidweek remainedslow in getting started Thursday, one source said. “It must bebecause nearly everybody, especially utilities and end-users, isslightly shell-shocked at the heights prices are hitting,” he said.”They realize June prices are going to be much higher than May’s,but can’t figure out anything they can do about it.”

A Gulf Coast/Northeast marketer said he plans to take all hisgas into June on a swing basis, adding, “I don’t want to try tofind a fixed price for the entire month with all this volatility.”He also commented, “Some people don’t seem to realize how seriousthe storage [deficit] situation really is.”

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