Price

Once again Friday traders who expected the cash market tosuccumb finally to the negative price pressures that have beenbuilding up were left wondering where its support is coming from.Even though the normal drop in demand associated with a weekendseemed real enough, sources said, quotes were flat to down just atouch in nearly all cases.

Following a four-day, 45-cent price decline, bulls weresuccessful in stopping the bleeding yesterday as strong physicalprices gave way to an unexpected late short-covering rally. Cappingits tenure as prompt month in dramatic fashion, the Januarycontract expired yesterday at $2.344, up 7.3 cents on the day and ahalf-cent above where it debuted as spot month on Nov. 29.

Following a three-day, 30-cent price rally, the natural gasmarket cooled its heels yesterday as traders took profits amidtechnically oversold conditions and ahead of fresh storage data.That sell-off sent the January contract tumbling 9.9 cents lowerthroughout the session yesterday. By virtue of trading above, thenbelow Tuesday’s range it completed an outside-down day on the dailycharts to settle at $2.486.

Transcontinental Gas Pipeline says it’s willing to price itsproposed SouthCoast expansion in Georgia and Alabama at anincremental rate, which should melt away much of the opposition tothe project.

Transcontinental Gas Pipeline says it’s willing to price itsproposed SouthCoast expansion in Georgia and Alabama at anincremental rate, which should eliminate much of the opposition tothe project.

With freezing temperatures essentially a no-show throughout theU.S., cash prices continued to decline in most markets Wednesday,with the biggest declines occurring in the supply-engorged Rockies.However, except for western points most of the softness was mild,and some Northeast citygates registered moderate upticks.

Ending a two-day, 24-cent price slide, natural gas futuresclawed higher yesterday as traders covered shorts ahead of theweekly American Gas Association storage report. However, thatbuying interest came to a sudden halt mid-afternoon Wednesday whenthe National Weather Service issued another bearish weather report.Prices quickly tumbled lower into closing bell, trimming profitsfrom more than a nickel to 1.5 cents before settling at $2.657.

After a July power price spike forced it to default on severalsales agreements with marketers and led to a $73 million net lossthat month, Cinergy Corp. seriously considered quitting the supplybusiness altogether (See NGI Aug. 9, Aug. 11). But CEO James E.Rogers said last week the company’s board of directors hasunanimously decided Cinergy should stick with it as the industrymoves to a competitive environment.

Price points throughout the country varied in their responses toweather forecasts, the American Gas Association storage reportexpectations, and a rising futures screen yesterday. Despite thelack of direction, many traders agreed that weather, which wasresponsible for significant increases in the East and Midcontinentearlier in the week, is set to regain its leadership role in themarket, and push prices down heading into the weekend.