Soaring

Cash Prices continued their upward rally Tuesday, skyrocketingin excess of 20 cents at most delivery points. Most sources agreeda vigorous buying spree fueled by market players coming into theweek short in anticipation of lower prices was largely to blame forthe continued spikes in most areas.

The Canadian natural-gas community sees potentially sharp priceincreases developing on its horizon, thanks to a happy coincidenceof pipeline expansions and economic conditions on the supply side.As the Alliance Pipeline accepted its final certificate for itsU.S. leg from the Federal Energy Regulatory Commission, risingprices were being predicted by prominent fixtures ranging fromPeters &amp Co., an investment boutique specializing in energystocks, to the dean of Canadian geological and engineeringconsulting houses, Sproule Associates.

Noticing continued futures strength and a growing threat of newstorm shut-ins in the Gulf of Mexico, cash prices built onTuesday’s gains with even bigger ones Wednesday. Increases oneither side of 20 cents were common at nearly all points. TheCalifornia market, far removed from Gulf storm influence, sawsmaller gains of about a dime, although a Malin rise of 13 centsnearly fulfilled one source’s prediction of up 20 cents there (seeDaily GPI, Sept. 16) based on Tuesday’s intra-Alberta pricestrength.

Ameren Energy started its electric and gas trading business offon the right foot this summer, getting into the market just in timeto make a small killing when electric prices spiked in the Midwestduring the last week in June. The company started out with just afraction of the personnel it expects to have on board by the end ofthe year.