Traders had to think about the unthinkable Friday: Gulf Coastgas trading for less than a dollar. A large number of points inLouisiana and Texas averaged in the $0.90s, and in a few caseslow-end quotes slipped into the high $0.80s. Few markets fared muchabove a dollar other than California, Sumas, Stanfield andColumbia-Appalachia.
Articles from Think
Traders with a penchant for market volatility and large priceswings may want to think twice about scheduling that three-dayweekend. Mondays, as of late, have been a roller coaster ride fornatural gas futures, with either double- digit increases (Oct. 26and Nov. 2) or declines (Nov. 9) welcoming traders back from theweekend. And the market held true to form yesterday, when forecastscalling for normal and above-normal temperatures managed toinspire fund, local and commercial sellers to push the Decembercontract to its two-week low. But in contrast to the declines lastMonday which came in a selling frenzy during the final twentyminutes of trading, yesterday’s price erosion was an all day affairthat left December down 15.4 cents to $2.305.
The overall price trend was up again Tuesday, but the market washardly a model of consistency. Some points, such as the Northernand Southern California borders and PG&E citygates, barelymanaged to maintain flatness or eke out small gains, while otherssuch as Waha and Northeast citygates continued to surge upward byas much as a dime or more. A marketer reporting Transco Zone 6(NYC) topping $2.60 said she hadn’t expected to see those kind ofnumbers again until next fall at the earliest.