Predicted

As a Daily GPI source had predicted Monday, that day’s futuresrun-up provided enough momentum to keep most cash market points onthe rise Tuesday. But don’t bet the farm on cash firmness tocontinue today, not after the screen’s headlong plunge Tuesday,several traders said. Despite heat waves remaining in the West andSouth, there is not enough in the way of fundamentals to counterthe screen’s negative influence, they said.

As expected, prices fell Thursday by a nickel to a dime at mostpoints. There was carryover momentum from Wednesday’s late cashsoftness that was pushed along by a drop on the futures screen, amarketer said. A lack of buyers also contributed to the marketweakness, he added. However, he saw Midcontinent prices onPanhandle Eastern, NGPL and ANR rebound to $2.08 after sliding aslow as $2.04 earlier in the day. That and the screen’s afternoonupticks have the marketer looking for upside potential in today’scash trading.

Enron’s announcement last week that it will be terminating itsresidential power marketing efforts in several states should be awake up call for the gas industry as well, where the pace of changetoward retail competition has been a disappointment for manyobservers.

As sources had predicted, Wednesday’s run-up on the Nymex screenset the stage for cash price rises Thursday, which were abetted byfurther futures gains. There was even some expected cold weatherdemand in the central and eastern sections of the U.S. to help giveprices a little boost, traders said. Increases were on the modestside, mostly within a range of 2-5 cents.