Cash traders found it impossible to ignore that there wasvirtually no weather-related load left for the weekend, andprobably felt that Wednesday’s and Thursday’s price reactions tostorage news and to a super-surge in energy futures related toMiddle East violence had been at least a little overhyped. Thusthey sent prices lower by double digits Friday at virtually everypoint.

Declines ranged as high as about a quarter in the Rockies, butmost were between a dime and 20 cents.

A marketer in a western city observed, “The weather is greathere and just about everywhere else. That, softer futures andgenerally lower demand over a weekend make it hardly surprisingthat prices fell.” Oil traders must have perceived some progress incalming down the volatile Middle East, he added, because crudefutures fell more than a dollar from Thursday’s huge run-up.Heating oil futures also got tagged with a large loss.

The screen was softer all morning but didn’t crater, and that inturn helped keep cash numbers from going much lower, one sourcesaid. He and a Texas producer agreed that after a bit of upwardmovement early in the trading session, prices tended to drop backlater.

General November basis has gotten a little tighter, according toa Midcontinent trader. Another source said Chicago basis had firmedfrom around plus 11-12 in the previous week to plus 14-15 Friday,although that was down slightly from plus 15-16 Thursday. It’s hardto figure why it would get stronger in the face of VectorPipeline’s absence next month, he said, but he assumed people mustbe expecting significantly colder weather in the Midwest.

The gas seller for a producer group, reflecting on this year’smarket, said producers “have just got to be thrilled” with currentprices, and noted that the midstream gas business also is doingextremely well. “But while times are good for us right now, wecan’t forget that old oilpatch bumper sticker: ‘Lord, please sendus another boom and we promise not to screw this one up,'” headded.

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