Succumb

As if finally recognizing that they’ve been coasting higher recently in the face of fairly weak seasonal demand, prices yielded to bearish fundamentals Tuesday in posting declines ranging from 1-2 cents at a couple of western points to 15 cents or so. Most losses were around a dime. Transwestern-Permian was an aberration with a small gain.

After some dalliance with flat pricing over the previous couple of days, the cash market Friday finally assumed the total softening mode that many had believed was its rightful status all along. Few points failed to fall less than a dime, but drops of more than 20 cents were largely confined to the San Juan/Rockies and border-SoCalGas markets.

Very high and very volatile energy prices, coupled with the fearof what they will do to overall economic growth, were among themain reasons cited by energy analysts that energy companies of allshapes and sizes were out in front of the U.S. stock market dipover the last two days.

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.