Fading

While the East looked around and, seeing nearly all appreciable weather load fading fast, decided to sit tight or retreat a bit price-wise Wednesday, most western points were soaring in a frenzy of buying. California and Rockies pipes saw spikes that often hit triple digits. Only flatness in the Pacific Northwest and at a couple of Permian Basin points, along with a downturn for intra-Alberta numbers, belied the overall western strength.

For the most part, a bearish trend in the fading December swingmarket once again held sway Thursday. With the continuing exceptionof rises at some Northeast citygates, most points registered pricedrops between about a dime and 50 cents. California, Sumas andTransco Zone 6 (non-NYC) led the way with triple-digit declines.

Feeding off Wednesday’s weakness and reflecting fading concernsthat any of the three tropical systems would reach the gas-richGulf of Mexico, the futures market tumbled lower yesterday as bothcommercial and speculative traders exited long positions. Theresultant price slide left the September contract just penniesabove its $2.90 low for the week and turned several bulls intoshort-term bears. The prompt month finished 8.2 cents lower at$2.948 shortly after notching a $2.93 low late in the session.