Citygates

Northeast citygates were solidly topping $6 Monday while those in the Midwest edged their way above $5 in a continuing show of strength by the cash market. Only the Rockies lagged behind with minuscule gains, while the rest of the market measured its advance in double digits that exceeded 20 cents in most cases and approached a dollar at Transco Zone 6-New York City.

Except for a few flat to slightly lower Northeast citygates and western points, most of the cash market continued to build on Wednesday’s advance with further large gains Thursday. And sources said that with the dazzling 38-cent spike in futures, it’s a pretty safe bet to expect more strength in cash numbers for the weekend.

Other than continuing consolidation of Northeast citygates and a smidgen of Pacific Northwest softness, the cash market saw a broad-based rally Tuesday. A soaring screen was an obvious positive influence on cash. But despite predictions last week of moderating weather by now, winter storm warnings for the Mid-Atlantic, Northeast and eastern parts of the Midwest also played a part in the new burst of bullishness.

Except for some upticks in San Juan Basin and at Northeastcitygates (especially strong in both of Transco’s Zone 6 pools),late-December swing prices stayed on a downhill slide Wednesday.Declines ranged from mildly softer to more than $2 lower atStanfield, but most were within the range of 40-70 cents.

Southern California border prices pushed well beyond $7 Tuesday,while PG&E citygates and Malin appeared to be in a catch-uprace with huge upticks of nearly a dollar at both NorthernCalifornia points. However, the big news that El Paso had gottenfederal approval to resume reduced service on its South Mainline’sLine 1110 did not come until late in the afternoon (see relatedstory in this issue).

Except for a lackluster, slightly lower performance at severalNortheast citygates, the cash market was flexing its muscles like avain pro wrestler Thursday. Price hikes that generally rangedbetween a nickel and a dime dominated the landscape, althoughCalifornia firming was milder except at capacity-constrained Malin.

Thanks to impending colder weather in the major northern marketareas along with some extra boost from a rising screen, overallcash prices ranged from flat to about a nickel higher Thursday,with increases of 3-6 cents tending to occur most frequently.

Prices kept falling Wednesday but at a slower rate than the daybefore. Even Northeast citygates were putting the brakes on theirdescent, averaging barely more than a dime down.

In sharp contrast to falling prices in all other areas,Northeast citygates were moving higher Tuesday. By far the mostdazzling performance came from Transco deliveries into New YorkCity that spiked by about a dollar above $4, much as they had onNov. 30. Unlike the end of November, when Transco Zone 6-NYC quotespeaked at $4.75, Tuesday’s top end hit $5.05.