Then

If convergence is what’s driving the energy industry, thenNiSource Chairman Gary Neale could be a good candidate to pilot theAmerican Gas Association into the new millennium. Neale is theAGA’s new chairman, but he’s also chairman of National ElectricityReliability Council, is on the board of directors of EdisonElectric Institute and spends his spare time attempting a hostiletakeover of Columbia Energy Group.

The November natural gas futures contract closed down 3.1 centsyesterday at $2.824 after trimming gains notched earlier in thesession. After a spirited sell-off in Tuesday’s Access trading, thenewly crowned prompt month erupted higher Wednesday to print a$2.94 high as buyers picked up contracts which they hope willrepresent bargains heading into the winter heating season. Byafternoon, however, the market banter had turned once again tobearish storage predictions and that pressured the market lower inlight trade.

Cash was basically “chasing” the screen Thursday, a marketersaid. Although overall numbers were down by a nickel or more atnearly all points, prices were rebounding in late activity aftertraders saw the Henry Hub futures contract for May overcome anearly dip and head back up.

A storage report considered bearish by most traders set thestage for softness in the cash market Thursday, then a plungingfutures screen virtually guaranteed cash declines. Sure enough,nearly every point fell between 5 and 8 cents. “We’re just tradingdown with the screen,” said a Western marketer.

The futures market gave back some ground early in the dayFriday, but then managed to rebound late to trade to either side ofunchanged for the day. That enabled the December contract to settlefor the second day in a row at $2.553. Estimated volume was amoderate 47,537.

The futures market retraced advances tallied Monday and thensome yesterday as traders discounted the threat of Hurricane Mitch.Profit taking by all segments of the market was the feature of theday. Only the final bell could stop the price erosion that left theNovember contract down 19 cents to settle at $2.108.

The July futures contract was nudged lower again yesterday butnot before bulls attempted to push the market higher early in thetrading session. July reached a high of $2.03 just before 1:00 P.M.EST. only to be beaten back to settle at $1.938, down 3.8 cents forthe day. By dipping into the low $1.90s the spot contract traded atits lowest point since April 1997.

The July Nymex contract looked poised to build on gainsyesterday by opening strong then immediately testing resistance inthe $2.20-21 area. However, for the second day in a row resistanceheld, leading to profit taking that sent July spiraling down tosettle at $2.156, a 3.5-cent loss for the day.

The May Nymex contract lost 2.1 cents to $2.501 Wednesday amidone of the most active non-expiration days in exchange history. Anestimated 93,649 contracts changed hands, many of which were tradedafter May fell back from its new all-time high trade of $2.56. “Mayhad pretty good resistance at $2.58, but I think funds were anxiousto take profits,” an analyst told GPI.