Soars

Most of Monday’s late-February market resembled the rest of themonth: a little up here, a little down there, and a lot of flatnumbers in between. Once again the exception was in Northeastcitygates, which went as high as the $2.50s in some instances.

With conflicting influences in several directions, much of thecash market decided to take a break Thursday and not wander veryfar from Wednesday’s levels. Small gains at most points outweigheda few scattered decreases. Modest strength in the Henry Hub gasfutures contract was countered by crude oil futures falling harderthan it had risen Wednesday, even as the U.S.-led air strikescontinued against Iraq Thursday. And forecasts for widespreadbelow-normal temperatures during Christmas week apparently meantless to gas traders than the current still-relatively-mildconditions.

Despite reaching another record of 2,899 Bcf, Canadian gasimports grew by only 0.5%, or 15.4 Bcf, last year, which was thelowest growth level in the past 11 years, according to a report bythe Department of Energy. DOE attributed the slow-down to tightimport pipeline capacity. It also mentioned prices at gas importpoints (under long-term and short-term contracts) in 1997 averaged$2.11, 10% higher than average prices in 1996. The average price ofCanadian gas at major import points rose 46% over the past twoyears, DOE said.