Trade

The Chicago Board of Trade (CBOT) closed an hour earlyyesterday, due to a power outage on the western loop area ofCommonwealth Edison’s (ComEd) power supply system. Thomas Donovan,CEO of the CBOT, said the outage was caused by three out of fourtransformers in the West Loop being out of service. ComEd did notreturn phone calls. The outage left 2,300 people in the heart ofChicago without power. Although no gas contracts are traded at theCBOT, the two electricity contracts traded at the exchange wereclosed at 2 p.m. EST. The exchange said its open outcry marketswill open normally today, and its electric trading system, ProjectA, is scheduled to open at 8 a.m. (Chicago time). There was noovernight trading at the CBOT.

Dynegy announced that Stephen W. Bergstrom has been namedpresident and chief operating officer of Dynegy Inc. Bergstrom wasformerly president and chief operating officer of Dynegy Marketingand Trade and senior vice president of Dynegy Inc. He has served asa member of Dynegy’s board of directors since 1995.

Although no panic buttons have been pushed yet, the Kansas City Board of Trade (KCBT) is getting increasingly worried about the recent lack of activity on its gas futures contract. There has been no estimated volume since July 29, and as a result, open interest has been stuck at 669 positions.

Although no panic buttons are being pushed yet, the Kansas CityBoard of Trade (KCBT) is getting increasingly worried about therecent lack of activity on its gas futures contract. There has beenno estimated volume since July 29, and as a result, open interesthas been stuck at 669 positions.

FERC last week dealt a partial blow to Dynegy Marketing andTrade’s control over a portion of its contracted-for capacity on ElPaso Natural Gas to California, resulting in a measured victory forthe state’s regulators and San Juan producers. Dynegy enjoyed atriumph of sorts as well, however. The Commission upheld the bulkof its prior decision approving the whopping El Paso-Dynegyarrangement, finding that while it posed some competitive concerns,it was not “unduly discriminatory” in nature.

FERC has dealt a partial blow to Dynegy Marketing and Trade’scontrol over a portion of its contracted-for capacity on El PasoNatural Gas to California, resulting in a measured victory for thestate’s regulators and San Juan producers. Dynegy enjoyed a triumphof sorts as well, however. The Commission upheld the bulk of itsprior decision approving the whopping El Paso-Dynegy arrangement,finding that while it posed some competitive concerns, it was not”unduly discriminatory” in nature.

After a choppy week of range-bound trading, bulls foundthemselves in the driver’s seat Friday at the New York MercantileExchange when weather forecasts and technical factors came intoagreement. Given the opportunity it didn’t take long forspeculators, comprised mostly of local traders, to become buyers inan attempt to push the August contract through resistance tobuy-stop orders that they knew were waiting in the $2.21-22 area.However, what they failed to realize was that there wasconsiderable commercial selling waiting there as well, it proved tobe more than enough to satiate the buying demand. The Augustcontract notched a $2.225 high shortly after 1 p.m. (EST) only tocome crashing back to settle at $2.187, an 0.8-cent advance for thesession.

Unocal Corp.’s Spirit Energy 76 unit completed the previously announced trade of most of its Rocky Mountain oil and gas assets to Tom Brown Inc (See NGI March 15, 1999). Unocal received 5.8 million shares of Tom Brown common stock (about 16.5%) and $5 million for the properties. The deal is worth about $76 million. Subject to certain restrictions and conditions, Unocal has the option to increase its stock ownership up to 19.5% through open market purchases. The sale agreement also entitles Unocal to nominate one director to the Tom Brown board.

Unocal Corp.’s Spirit Energy 76 unit completed the previouslyannounced trade of most of its Rocky Mountain oil and gas assets toTom Brown Inc (See Daily GPI March 11,1999). Unocal received 5.8 million shares of Tom Brown commonstock (about 16.5%) and $5 million for the properties. The deal isworth about $76 million. Subject to certain restrictions andconditions, Unocal has the option to increase its stock ownership upto 19.5% through open market purchases. The sale agreement alsoentitles Unocal to nominate one director to the Tom Brown board.