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To: isopatch who wrote (81046)	12/8/2000 10:29:59 AM
From: excardog	Read Replies (2) \| Respond to of 95453

NY Natural Gas: Rallies After Short Covering Halts Correction Dec. 8-MAR-- By Gloria Gonzalez, BridgeNews New York--Dec. 8--NYMEX Jan Henry Hub natural gas futures are now higher this morning as an early attempt at a technical correction stalled when the market found support in the $7.90 to $8.00 range and headed higher amid short covering. Traders said cold weather during the first half of the weekend and forecasts for cooler temperatures next week were supportive. At 1013 ET, Jan natgas was up 22.7 cents at $8.600 per MMBtu. * * * The market was in the midst of a normal pullback after Wednesday's record-setting rally with players taking profits following the Jan contract's ascension to a new all-time high of $9.539 per MMBtu. "I'm seeing some profit-taking," one trader said, adding that the decision to increase margins was also a factor. "That should encourage some selling." The New York Mercantile Exchange will raise the margins on its Henry Hub natural gas contract at the close of business Friday to $12,000 from $10,000 for clearing members, to $13,200 from $11,000 for members and to $16,200 from $13,500 for customers. However, an attempt to extend the sell-off failed when the market found support in the $7.90 to $8.00 per MMBtu range and bounced back up to trade in positive territory. "I think the downside move was just a correction," one broker said. "We held that $8.00 level very well. I don't think anybody wants to be short this market ahead of the weekend." Colder temperatures are predicted in western and north-central sections of the contiguous United States over the next week to 10 days. The cooling will bolster natural gas use in those areas, but the eastern and south-central sections of the nation will see a mild to slightly warm temperature bias, reducing heating needs, according to Bridge Global Weather Services. End