Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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

To: ronayre who wrote (75024)	9/29/2000 1:13:55 AM
From: The Ox	Read Replies (1) \| Respond to of 95453

Sep. 28-MAR-- [B] NY Natural Gas Review: Plummets amid profit taking, weak cash By Gelu Sulugiuc, BridgeNews New York--Sept. 28--NYMEX Nov Henry Hub natural gas futures plummeted amid profit taking and weak cash prices as a tropical disturbance in the Caribbean Sea failed to impress traders. Nov ended down 31.7 cents at $5.130 per MMBtu. Speculation that upcoming storage injections might diminish the year-to-year deficit also helped push the market down, traders said. * * * Nov lost almost 6% of its value Thursday. "We've gone up too much," a trader said. "You need a bit of a profit taking, a bit of a pullback." Rising temperatures reducing heating needs and weak cash prices also contributed to the slide. "The sell-off should have happened yesterday," said Guy Gleichmann, senior trader at FSG International. "Short covering ahead of the Oct expiration stalled yesterday's attempt at a sell-off." A tropical disturbance in the northwestern Caribbean Sea is being closely watched by the U.S. National Hurricane Center Thursday morning for signs of tropical depression evolution, but market players seemed unfazed. "It's too early for this (to be a factor)," a trader said. "We've had two near-misses with decent size disturbances and now people are getting numb to hurricane hype." Recently the natural gas market has been following the crude market more closely, and when crude lost more than $1, gas followed. "People that got long at higher levels got stopped out," a broker said. "It just couldn't find any support anywhere." OUTLOOK: Traders will look to see if the market can sustain support at the $5.080 level. "That's a critical number," the broker said. "If we hold that, we can rally back up. If we break that, you can see $4.840-$4.860." Some traders seemed to expect the market would pop up in the morning, as they established new longs at $5.170 during Access trading, up 4.6c from Thursday's settlement. Traders and analysts continue to speculate on how much gas will be in storage at the beginning of November. Many believe injections will stay firm the next couple of weeks, cutting into the year-to-year storage deficit. "If storage falls short of 2,700 bcf (by the onset of winter), that justifies $5 gas," Gleichmann said. "If it is above 2,700 bcf and we get a mild winter, we could see a violent correction. At the first sign that November is mild, I think you could have quite an adjustment of the price." End Gloria Gonzalez contributed to this story. --Nov futures expire Oct. 27, while Nov options expire Oct. 26. --American Gas Association storage report due out at 1400 ET Wednesday.