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Gold/Mining/Energy : Canadian Oil & Gas Companies

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To: Richard Saunders who wrote (3687)9/18/1997 12:33:00 PM
From: Brandt Maxwell   of 24939
 
What you heard about the lack of persistent cold during an El Nino winter is a pretty good "forecast", since indeed a stronger zonal (west to east) flow will keep mild Pacific air over most of the US and maybe even parts of southern Canada (though further north, the cold air might actually be more persistent (relative to normal) because it is not released from that area (in the form of cold blasts towards the south) as often. Of course, northern/central Canada is sparse...so not much consumption of natural gas there!

I do think El Nino might be good for volatility of natural gas, since a sharp cold spell WILL (like 98 percent chance) drop south into the US at some point (even though most of the winter may be milder than normal), and if supplies are limited, there could be a quick run-up when the cold is expected.

Later...Brandt
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