Testing

After briefly testing resistance in the $2.00 area Wednesdaymorning, the futures market continued its journey lower as traderswere able to look past the short-term bullish impacts of coldweather and associated pipeline operational flow orders to focus onthe longer-term implications of storage and forecasts calling forwarmer weather. The February contract finished 4.4-cents lower at$1.931.

After briefly testing the downside early Friday, January futuresclawed their way higher and briefly broached the $2.00 level in theafternoon. But a late selloff ensued, which chased prices back downto settle at $1.978, a 1.9 cent gain for the day. Estimated volumewas 72,807.

Constraints will be minor today at the Opal (WY) processingplant as Williams Field Services begins testing and maintenance.But at least half of the plant’s current 540 MMcf/d activity willbe off the market Tuesday as the plant is shut down for 12 hours.Reductions June 17-24 will be about 75 MMcf/d.