Last week’s market closed on a “relatively” sedate note Friday, at least relative to the preceding trading fireworks. But the downward price movement was still being measured in double digits in nearly all cases.

By far the largest declines occurred in the West, which was both the warmest market area and was affected by a high-linepack OFO issued by PG&E for Saturday (see Transportation Notes). The OFO helped push PG&E citygate and border-PG&E quotes down by more than 40 cents, while Malin dropped more than 30 cents. SoCalGas did not issue an OFO, and border deliveries to its system fell only a little more than 20 cents.

The only eastern point down by more than 30 cents was the Florida citygate. Florida Gas Transmission ended a long-running low-linepack OFO Friday.

Prices started slightly above their eventual averages, fell about a nickel, and then regained a couple of cents, a Northeast marketer said, concluding, “Overall ranges were not very big.” An intrastate Texas trader agreed that Friday’s activity was not nearly as volatile as it had been earlier in the week. Even with the weekend downturn, prices still seem relatively strong in light of the huge storage inventory that has been built up for the winter, he said.

ANR posted a notice (see Transportation Notes) indicating that processing economics are becoming unattractive again in the Gulf Coast.

A Gulf Coast source noted that Sonat reported it was running a cumulative system cash-out imbalance for October in excess of 1.5 Bcf short as of Wednesday. “That means people borrowed a lot of gas from the pipe earlier while hoping to pay it back in the last few days of the month at lower prices,” he said, “but the recent run-ups apparently have made that a bad strategy call. C’est la vie in the gas market.”

A couple of sources see reason to expect another fairly low storage injection figure from AGA this week. There were some reports last week of storage being withdrawn to take advantage of the big price spikes registered on three trading days, with at least one producer saying she knew of several cases in which this was done. A Northeast trader said Friday that physical capabilities and tariff restrictions prevent early storage withdrawal at many market area facilities, “but I have no doubt that prices have gotten high enough that there’s some production area storage being put on the market.” And a Calgary-based producer reported about 350 MMcf being pulled out of provincial storage Friday, “so I think I can say the injection season is pretty much over.”

Indexed and basis deals continued to constitute the bulk of November bidweek trading so far. Buyers want to wait until today before committing much business because they think weather forecasts and the screen will be more favorable for them, a Gulf Coast trader said.

A marketer said he had only done border-SoCalGas deals at index minus 2 cents, but added that EnronOnline was offering border fixed prices in the mid $2.80s Friday, which is about where swing numbers were that day.

Several sources concurred that basis was strengthening a bit Friday. One quoted basis at plus 3 cents for Transco Station 65 and minus 5 cents for Transco Station 30. A Northeast trader reported both Transco Zone 6-non NYC and Texas Eastern M-3 running about plus 40 cents.

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