Holey Moley Very Smart OIL Guy! NG up 4% today alone. NG may not wait till Xmas to do $3.
When all the industry guys ask if you have any NG to spare, what do you tell them? <GGGGGGGGG> On second thought, don't answer that question!
Bloomberg Energy
Fri, 23 Jul 1999, 1:42pm EDT
7/23 12:50 N.Y. Natural Gas at 8-Month High as Heat Boosts Demand From Utilities
By Josh P. Hamilton
Natural Gas Rises to Eight-Month High on Increased Power Demand
New York, July 23 (Bloomberg) -- Natural gas rose 4 percent
to an eight-month high on speculation that utilities will burn
more of the fuel to generate power as hot weather in parts of the
U.S. boosts air conditioning use.
High humidity and temperatures into the mid 90s Fahrenheit
are expected again today from Chicago to New York. Cooling demand
is expected to be more than 60 percent higher than normal in the
Midwest during the next seven days, according to Weather
Derivatives, a Belton, Missouri-based forecasting firm.
''With heat expected to move into Northeast again over the
weekend and remain in the mid-continent area, demand is high,''
said George Ellis, a trader at Paribas Energy Futures in New
York. Also, many speculators had sold contracts betting prices
would fall and are having to buy them back to limit losses, he
said.
Natural gas for August delivery at the Henry Hub in
Louisiana rose as much as 9.5 cents to $2.49 per million British
thermal units on the New York Mercantile Exchange, the highest
intraday price since Nov. 13. Prices have risen 14 percent this
week and are 26 percent higher than a year ago.
Cash prices aren't keeping pace with futures, so the rally
may be losing steam, Ellis said. Spot gas recently was trading at
the Henry Hub at $2.41 per million Btu bid and $2.45 ask.
If temperatures fail to reach the 90s on Monday, futures
prices could retreat to the upper $2.30s, he said.
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