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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: diana g who wrote (46135)	6/9/1999 9:39:00 AM
From: Ken Robbins	Read Replies (1) \| Respond to of 95453

Maria B. just reported on CNBC that API crude oil stocks were up 2.6 million barrels for the latest week. Would someone please post the accurate figures so we can e-mail a correction if necessary.

To: diana g who wrote (46135)	6/9/1999 9:44:00 AM
From: Tomas	Read Replies (1) \| Respond to of 95453

Oil & Gas Interests Newsletter: Natural Gas Markets As usual, the normal increase in demand for natural gas entering the summer months is expected, although it may be limited. Several regions are expected to experience tightness in power supply this summer, and natural gas prices are rising in response. Nonetheless the upside normally felt in the summer months is expected to be limited, because the normal summer price boosts-increased power demand and shrinking storage surplus-have already been factored into the current prices. Natural gas demand is also expected to get a boost from fuel switching. With the recovery in crude prices, refined products markets have also increased. With the increase in low-sulfur residual fuel oil prices, natural gas is becoming an economically viable alternative for dual-fired electric generators. Nonetheless, according to Susan Bertsch of Bonner and Moore Associates, " Barring any major jolts to the market, such as more extensive electric generation capacity outages, summer increases in natural gas prices will be limited to a few cents per million Btu." Bertsch went on to say that an increase in prices could also be triggered from the supply side, such as through the temporary loss of Gulf Coast production during the upcoming hurricane season. However, such a possibility may be reduced due to ample storage gas in the South, especially if this season's storms are minor. As of May 26, Henry Hub stood at $2.226 per million Btu. The monthly average so far in May was $2.265 per million Btu, up from April's average of $2.147. "The natural gas market has pushed beyond focusing on the present and is instead looking to a summer when fundamentals will be stronger. Current cash prices are riding a wave of sentiment that will keep Henry Hub prices in the range of $2.20 to $2.30 per million Btu for the next several months," Bertsch predicted. With natural gas demand near its season low, demand is estimated to be averaging 59.94 billion cubic feet per day. Growth for natural gas demand over the next several months is expected to be provided by the industrial and electric utility sectors. Industrial demand is estimated at 22.42 billion cubic feet per day, an increase of roughly 3.47% from this same time last year. Demand has also increased from the electric utility sector, where demand is averging 9.7 billion cubic feet per day-about 3.61% higher than last year. These sectors are expected to continue to increase demand at current rates through the summer. The National Weather Service's extended weather forecast through July is calling for warmer than normal temperatures in the Northeast, as well as Florida and the southern tier states, and cooler than normal temperatures in the the Great Plains and Upper Rockies. Precipitation through July is expected to be above normal in the central Mississippi Valley and Pacific Northwest and below normal in the Desert Southwest. Oil & Gas Interests Newsletter, published on June 1 - Jen Blader