To: JoeinIowa who wrote (22224 ) 11/18/2000 7:33:37 PM From: JoeinIowa Read Replies (1) | Respond to of 29382 All Energy News 11/17 16:30 Natural Gas Rises on Forecasts for Colder-Than Expected Weather By Bradley Keoun New York, Nov. 17 (Bloomberg) -- Natural gas rose more than 5 percent, rebounding from yesterday's decline, as new forecasts showed that temperatures next week in the northern U.S. will be lower than previously expected, boosting heating demand. A weather pattern that dropped temperatures from Chicago to New York in recent days will re-form late next week, according to Windsong Forecast in Richmond, Virginia. Prices fell 7.5 percent yesterday on expectations for a warm-up next week. It was one of only two losing sessions during a rally that's sent prices up 37 percent this month. Forecasts suggest ``energy usage is going to be strong going into December,'' said David Tolleris, a meteorologist and owner of Windsong, a weather risk management firm. Natural gas for December delivery rose 30.2 cents, or 5.2 percent, to $6.10 per million British thermal units on the New York Mercantile Exchange. Prices have more than doubled this year on concern that inventories this winter will be too low to avoid spot shortages. They touched $6.32 on Wednesday, the highest price in 10 years of trading, before falling back yesterday. U.S. inventories of natural gas fell 0.2 percent last week, dropping for the first time in seven months and leaving them 9.1 percent lower than a year earlier, the American Gas Association said Wednesday. ``There are serious concerns about whether we can actually meet demand with the supply we have right now,'' said Chris Eades, an energy analyst at UBS Warburg in New York. ``Any prospects for colder weather are going to spook the market.'' A cold weather system this week moved across the northern U.S. from the Great Plains toward the East Coast, sending temperatures down to levels normally seen during December. Heating Demand That boosted demand for heating gas in the north-central U.S. The region, which includes Wisconsin, Illinois, Indiana, Michigan and Ohio, accounts for about 30 percent of U.S. residential gas consumption. About 80 percent of homes in the region are heated by gas, according to the U.S. Energy Department. While temperatures may return to normal on Wednesday and Thursday in Chicago, they will plunge again beginning Friday, as arctic air from Canada moves into the region, Tolleris said. The cold air will move eastward, keeping temperatures below normal in the eastern U.S. from Nov. 29 to Dec. 3, he said. -------------------------------------------------------------------------------- © Copyright 2000, Bloomberg L.P. All Rights Reserved.