Afternoon

A run-up in citygate prices in the Northeast that had startedlate Wednesday afternoon was falling back rapidly by middayThursday, but not before some buyers had paid more than $3 intoTransco Zone 6-New York City. A trader reporting $3.00-$3.25 salesfor Zone 6-NYC said he had received a late offer of $2.65. TexasEastern M-3 numbers also were coming off hard, another source said.

After trading nearly a dime higher for most of the sessionMonday, the futures market collapsed during the last 20 minutes oftrading amid a flurry of selling that was set in motion bysell-stops and wide cash-futures basis. By the time the dust hadsettled, December’s $2.442 close was 11.1 cents off Friday’s leveland nearly 20 cents from session highs. Estimated volume was arobust 76,481.

Traders’ opinions have varied as to the direction the futuresmarket would take this week, and so it came as no surprise Mondaywhen it tested both the upside and the downside in early trading.But, when selling dried up below the $2.10 level, the Novembercontract was free to migrate higher to settle at $2.143.

Fueled by Tuesday afternoon advances, the November contractraced out to a strong start on Wednesday. But the rally becameshort-lived when it met with a wall of selling in the mid-teens,leaving the market to finish lower at the closing bell. TheNovember contract settled at $2.041, a 4.3 cent decline for theday.

All the gas flowing to the Florida peninsula was cut off overthe weekend after a lightning strike Friday afternoon caused a fireand pipe rupture at Florida Gas Transmission’s Station 15 nearPerry, FL, and knocked out all downstream service. The 24-inch,30-inch and 36-inch mainlines that converge in the station yardwere affected.