Market

Judging from the huge dip in futures prices yesterday, themarket apparently didn’t get wind of a new, more bullish hurricaneseason forecast by renowned hurricane prognosticator Dr. WilliamGray and his team of soothsayers at Colorado State University.

Florida Gas Transmission lifted an Overage Alert Day notice (seeDaily GPI, May 25) for its market areaWednesday, but said it will continue to monitor hourly and dailytakes.

Florida Gas Transmission lifted an Overage Alert Day notice (seeDaily GPI, May 25) for its market areaWednesday, but said it will continue to monitor hourly and dailytakes.

The cash market managed to rebound Monday from the weekend’smild softness, but the bounce back up was small. Monday’s quotesranged from flat to almost a dime higher, with most of the upticksless than a nickel.

Florida Gas Transmission lifted Sunday a market-area Overage AlertDay notice that had been issued last Tuesday (see Daily GPI, May 10), but cautioned shippers it wouldcontinue to monitor hourly and daily takes.

El Paso sent out a request last week for potential shippers onits proposed Yuma Lateral to get their plans in order. The project,which will serve new gas-fired power generation in Sonora and BajaCalifornia, Mexico, includes a broad range of possibilities interms of size and location.

The “unbalanced state” of the natural gas market with demandexceeding supply has caused PaineWebber analyst Ronald Barone toraise his average gas price projections by 15 cents for this yearand 10 cents next year over previous predictions, and warn ofpossible severe price spikes throughout the balance of this year.

The “unbalanced state” of the natural gas market with demandexceeding supply has caused PaineWebber analyst Ronald Barone toraise his average gas price projections by 15 cents for this yearand 10 cents next year over previous predictions, and warn ofpossible severe price spikes throughout the balance of this year.

Citing significant demand, Florida Gas Transmission issued anOverage Alert Day notice Tuesday for its market area. The noticehad a 10% tolerance for negative daily imbalances, but FGTsaid itmay reduce the percentage if conditions do not improve. Thepipeline, which previously re-evaluated system operations eachmorning before announcing whether an OAD would be extended, nowsays the notices will remain in effect “until further notice.”