Despite

After two brief rally efforts failed to produce higher prices,the futures market again came under selling pressure as moreprominent bearish fundamentals more than offset below-normal marketarea temperatures. And in a rare occurrence, the 4.1-cent loss seenin the prompt March contract was outpaced by more substantiallosses in the April, May, June and July contracts.

Despite a disappointing storage report and continuedabove-normal temperatures across the country, natural gas futuresbubbled higher yesterday as technical traders found good value inprices near the bottom end of the recent trading range. And byadvancing 6.2 cents to settle at $1.837, the March contract notonly washed clean Wednesday’s declines but also positioned itselfback in the middle of the $1.725-925 trading range. Estimatedvolume was a somewhat lackluster 61,716 contracts.

Despite announcing one-year commodity sales agreements withOutback Steakhouse and the Hair Cuttery in Northern Virginia thisweek, Constellation Energy Source said retail commodity sales arelosing their allure. The company, a nonregulated subsidiary ofBaltimore Gas & Electric, has closed several small retailmarketing offices and eliminated six retail commodity salespositions to make room for more engineers and energy servicesexperts.

Despite much-above- normal temperatures across much of the U.S.,natural gas squeezed out small gains at the New York MercantileExchange yesterday in a mostly dull trading session. Throughoutmost of the day the March contract looked as if it would closeunchanged, but a late rally put a positive spin on the day’sevents, nudging the prompt month 2 cents higher to finish at$1.838. Estimated volume, registering a measly 37,697 contracts,confirmed the sluggish nature of the market.

Despite bullish prospects two years ago with the advent ofderegulated energy markets, California independent gas producers atthe start of 1999 are still struggling against depressed prices,slow developing electric and gas restructurings and a hard core ofthree major investor-owned utilities that have proven to beformidable competitors. One independent producer, Tri-Valley Corp.,in Bakersfield still expects to ride out continuing years of redink until real gas/electric competition and increased oil/gasprices eventually make current projects profitable in the long run.

Despite strong performance by TransCanada’s transmissionbusiness, like most everyone else the company took a hit toyear-end earnings due to flagging commodity prices. TransCanadareported net earnings before unusual charges of $575 million 1998,down 8% from $620 million for fiscal 1997. Net earnings afterunusual charges, for the year ended Dec. 31, 1998 were $355 millioncompared to $522 million for the year ended Dec. 31, 1997.

Despite a dearth of fundamental support, the cash market sawmostly minor gains Wednesday. The firmness came as a surprise tomany who couldn’t understand where the demand was coming from. Aminuscule gain in Henry Hub futures didn’t give cash much impetusat all, one trader said.

Despite the warmest year since 1921 in Michigan and a poorfourth quarter, CMS Energy announced a growth in net income to $284million, or $2.65 per share, in 1998 from $244 million, or $2.39per share, in 1997. The company credited improvements in both itsutility and international energy businesses as reasons for thegrowth.

Choppy trading continued at the New York Mercantile Exchangeyesterday as the futures market was pressured lower early, only tocome roaring back in the afternoon. The February contract finishedup 3.9 cents to $1.809.