SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Big Dog's Boom Boom Room
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: ChanceIs who wrote (71894)9/25/2006 6:38:04 PM
From: quehubo  Read Replies (2) of 206280
 
Actually that is not true. My concern with the markets now is 3/4 with the poor injections in September which are strong even considering the cooler weather.

Built in any forecast for storage activity there is an assumption that lower prices will stoke some demand. the only demand found was buyers for storage this month.

If we had heat like last year which followed the June July period I think we would have better ng prices now.

One needs to understand where the demand is and just how levered the ng markets are to GW HDD in the Winter and CDD in the Summer. There is little industrial demand response to lower prices. We already picked up heating oil and residual demand. We wont touch coal demand unless until next Summer unless ng prices are $3.50 maybe.

I am sure there are many who cant believe in the bad sequence of weather events. We would be much better off if Katrita never hit and prices stayed around $7-8 last Q4. Killing demand and forcing demand to residual and HO. Then prices held up through the Winter when it was not necessary.

Contango forces the storage action when lower prices could have moved supply in the Summer.

Take a look at the ng ng rig count over the last nine months. 4-6 months out there is a response that we will be feeling through April.

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News