York

Activity at the New York Mercantile Exchange resumed after thelong holiday weekend Monday, and apparently traders hit the marketwith one primary objective in mind: to sell. The spot Augustcontract opened at what turned out to be its daily high of $2.43,and ended up falling 7.4 cents to settle the day at $2.365. Anestimated 32,810 total contracts changed hands.

Although many signs have been pointing to a major rally infutures prices lately, Wednesday’s trading at the New YorkMercantile Exchange just may put an end to that talk. Aftermanaging to rise above key resistance at $2.50, the spot Augustcontract saw major selling by funds and locals, so much so thatAugust fell to a low of $2.41 before settling the day down 1.9cents at $2.450.

New York State Electric & Gas Corp. (NYSEG) voiced itssupport for legislation to give states authority to modifynon-utility generator contracts. Congressmen Gerald Solomon, AmoryHoughton (R-NY) and Edolphus Towns (D-NY) introduced HR 4183, whichwould clarify the Public Utility Regulatory Policies Act of 1978.Changes proposed are said to ensure just and reasonable costs forNUG power sold to utilities. State regulators would be permitted tomodify prices utilities are currently required to pay non-utilitygenerators so they do not exceed the market price of electricity atthe time of delivery. The legislation also would establish programsto monitor non-utility generators to ensure they continue to meetFederal Energy Regulatory Commission requirements.

Columbia Gas Transmission’s proposal to sell its Project Pennytransmission system in western New York and northwesternPennsylvania to Norse Pipeline LLC, which seeks to refunctionalizethe facilities as gathering, is a “thinly-veiled attempt todramatically increase” rates to move gas on the system atproducers’ expense, charged an independent producer.

Bulls have had very little if anything positive to talk aboutlately with respect to gas prices at the New York MercantileExchange. Mild June temps, a healthy storage level, and amplesupply have weighed on the market since the current downtrend beganon April 9th. So it comes as no surprise that upon the release ofthe less-than-expected 86 Bcf AGA storage injection, bulls sawtheir first opportunity in a while to push the market higher. Thefirst thrust was registered in Wednesday night’s ACCESS session.Then, after opening higher yesterday, the contract traded in a neat5-cent trading range settling at $1.970, up 4 cents for the day.

Trading at the New York Mercantile Exchange was once againsubdued on Tuesday, as many traders seemed to stand to thesidelines in anticipation of the release of the AGA storage reportlater this evening. Amid what trading did get accomplished, theJune contract inched 1.5 cents higher to settle the day at $2.149.

It was pretty much a nothing day at the New York MercantileExchange on Friday, as the spot June contract could only move 2.2cents lower to settle the day at $2.178. Trading was limited to atight 4 cent range.

Trading at the New York Mercantile Exchange returned to “morenormal” levels Monday following last weeks GasMart/Power tradeshow, a phenomenon one broker said was reflected in the 4.8 centgain (to $2.215) the June contract posted yesterday. “Cash marketprices were up a dime or so on the weather, and futures traderstook notice,” he said. However, he noted the strength was notenough to forge a settle above major resistance at $2.26, which ledhim to believe “the technical trading range remains.”

Following three days when trading volume at the New YorkMercantile Exchange averaged 117,518 contracts, the May contractgained a mere 1.4 cents to $2.342 amid a session when “only” 74,378contracts changed hands. Sources said much of the activity onFriday was simply position covering ahead of both the weekend andthe expiration of the May contract this Tuesday.