Except for still-tumbling prices in the Northeast and in theRockies, which ironically were among the chillier regionsWednesday, most of the cash market pulled out of the tailspin thathad characterized Tuesday’s start of November swing trading. Otherareas tended to range from mildly lower to mildly higher.

Sumas, Kingsgate and Stanfield were standout points with gainsof more than 30 cents, but that was to be expected due to thebeginning today of maintenance work on the TransCanada-BC Line(formerly ANG) that will run through Sunday. The capacityconstraint of about 10% will back up gas into Alberta, a marketersaid, but proved a price boon for alternative supply points in thePacific Northwest and Northern California (Malin).

The TransCanada-BC constraint and the continuing entitlement ofNorthwest’s system north of Kemmerer, WY, served to push theSumas/domestic spread to nearly a dollar. In that situation, “ifyou’ve got primary firm transport on Northwest, you’re living lifelarge; if you don’t, it sucks,” a marketer said. He explained thatwhile Northwest prices south of Kemmerer may be sagging, a primaryfirm service holder can buy gas cheaply there and sell it at ahefty premium at Pacific Northwest citygates north of Kemmerer.

Intra-Alberta prices did not soften very much even with abottleneck impending at the Alberta/British Columbia border, said aCalgary trader quoting deals from the mid C$5.50s to around C$5.80.Provincial gas usually follows Nymex movement closely in all-daytrading, she said, so apparently the screen run-up largelyoutweighed the border capacity cut.

Once again cash sources were left scratching their heads whenthe screen greeted AGA’s report of 70 Bcf injected last week with astrong push higher. The sources said such a high volume seemedbearish to them, but they couldn’t divine the psyches of folks inthe futures trading pit. “It was practically the same number aslast week when futures plunged, but this week it soars,” said apuzzled marketer. Maybe the Nymex people are hearing about somecolder weather coming up, he suggested, but the latest six- to10-day forecast from the National Weather Service only projectsbelow normal temperatures for the less densely populated westernhalf of the U.S.

Regardless, a marketer reported Midcontinent numbers risingduring the morning trading session. He sold Reliant-east at $4.15but was hearing of mid $4.20s deals later. He attributed theuptrend mainly to strength in Tuesday evening’s Access futurestrading and continued futures strength Wednesday morning. But awestern marketer said the trend was opposite in California. Afterbeing pegged high early in the morning by an online trading system,California prices drifted lower throughout the rest of the day, hesaid. The softening was expected, he said, “considering theinflated values that were offered yesterday [Tuesday] morning.”PG&E citygates were hardest hit, he added, with prices fallingfrom the low $5.30s all the way down to the high $5.00s.

Another trader expects the screen run to push most, if not all,cash points higher today. A lot of utilities went into the monthshort in anticipation of lower aftermarket prices, she said. “Theywere justified initially, but that decision might be going againstthem now.”

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