Except for some western upticks, the cash market bore remarkableresemblance to a pancake Wednesday. Flatness remained the order ofthe day at nearly every trading point. And much as on Tuesday, thelittle bit of price movement that did occur in the East wasgenerally a little lower.

With gas demand currently so weak, a marketer could see nothingpreventing a sizable cash downturn other than “Nymex traders tryingto hold prices up.” He confidently expects the market to softeneventually before heading back up. But for now, “there’s not muchfun in trading gas these days,” he said.

Hot weather and supply cuts were the chief reason for thewestern price strength, a large aggregator said. High temperaturesexceeding 100 degrees in much of the desert Southwest boosted airconditioning load in the east-of-California market, and there was”decent” demand from California itself, he said. That sent San Juanprices higher by a few cents, with Southern California border andMalin quotes up by similar amounts. Southwest and Rockies upticksgot further support from an estimated 900 MMcf/d of Canadian gasbeing taken off the market as NOVA began a pigging operation on itsWestern Alberta Extension.

Chicago citygates initially were down a few cents, one sourcesaid, but Northern Indiana Public Service Co. showed upconspicuously short late in the trading session and prices reactedby rebounding as high as $2.35.

Basis is beginning to tighten for July, a Midcontinent marketersaid. Sellers are trying to hold out for index-plus deals, hecontinued, but for that reason they’re not attracting any buyersyet. However, he believes a forecast for above-normal temperaturesin the Northeast next week could tip the scales in sellers’ favorbetween now and bidweek.

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