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Gold/Mining/Energy : Big Dog's Boom Boom Room
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To: quehubo who wrote (62046)3/25/2006 9:46:16 AM
From: Keith J  Read Replies (1) of 206299
 
Que,

I can't understand why the futures market has NG so high for later in 2006 and early 2007. It's almost back to the standard 6:1 ratio with crude, but the market doesn't seem to think that demand will suffer at this higher price, which we have pretty good indication from the last several months that high NG prices are choking off significant demand. Not to mention we are looking a possibly record storage levels going into the winter.

If I was a producer, I'd be saying thank you and hedging more here.

KJ
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