For a lower-demand weekend period preceded by a falling screenand expected to continue the unseasonably warm weather pattern thatdominated nearly all of November, there was surprising firmness inmost of the cash market Friday. Except for further Northeastcitygate declines, essentially flat quotes prevailed elsewhere. Onetrader suggested the moderate gain in futures Thursday may haveprovided a modicum of psychological support for cash traders Fridaymorning.
My, how the once-mighty have fallen. After becoming the onlypoint to surpass $4 in all of 1999 Tuesday, Transco Zone 6-NYCcontinued its free-fall back down Friday with a dive to the $2.40s.That left it about a quarter below index, even as mostproduction-area points managed to hang around in the neighborhoodof index levels.
Noting that it would be a relatively warm weekend in theNortheast but due to cool off again today, a buyer in the regionarranged for a couple of Monday-only citygate packages but had topay anywhere from 7 to 15 cents above his full-weekend purchases.”You have to pay some premium for that Monday-only stuff,” heexplained, because the supplier has to find someplace else for hisor her gas for the rest of the weekend.
Sonat prices were flat despite the pipeline warning of apotential high-linepack OFO for the weekend. Late Friday afternoonSonat said there would be no OFO, at least not for Saturday.
Intra-Alberta numbers started out only slightly lower atC$2.69-70, a marketer said, but fell in the afternoon to just underC$2.60, likely influenced by the screen drop and unseasonably warmtemperatures in the province. However, most business got done inthe upper C$2.60s.
A western trader said prices tended to go up during the morning,so by buying in the Permian Basin early and selling in the San JuanBasin late he wound up with low to mid $2.00s San Juan numbers thatexceeded his high $1.90s Permian quotes. But he said the two basinsactually traded overall at near parity, which was confirmed byDaily GPI averages.
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