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To: jim_p who wrote (82646)	12/26/2000 10:58:51 AM
From: Razorbak	Read Replies (2) \| Respond to of 95453

"Natural Gas Index Rises to Record High" By Myra P. Saefong, CBS.MarketWatch.com Last Update: 10:50 AM ET Dec 26, 2000 NEW YORK (CBS.MW) -- The Amex index of natural gas stocks hit its highest level ever Tuesday, as prices for natural gas futures rose to a record high on concerns over tight near-term supplies. The Amex Natural Gas Index ($XNG: news, msgs) gained 7 percent to 259.53 after climbing to a high at 260.28 as shares of EEX Corp. (EEX: news, msgs) rose $1.19 to trade at $5.44. Gains were also noted in shares of Noble Affiliates (NBL: news, msgs) , which added $4.56 to $45.75, and shares of Pogo Producing Co. (PPP: news, msgs) , which gained $2.69 to $29.94. Although shares of natural gas companies climbed 6 percent last week, there's still a 23 percent upside remaining on average to target prices, David Bradshaw, an analyst at Deutsche Banc Alex. Brown said in a research note. Bradshaw has a "strong buy" rating on shares of Anadarko (APC: news, msgs) and "buy" ratings on shares of Noble Affiliates, Spinnaker Exploration (SKE: news, msgs) and Burlington Resources (BR: news, msgs) . Meanwhile, the Oil Service Index (OSX: news, msgs) tacked on 3.5 percent to 122.85 shares of Baker Hughes (BHI: news, msgs) climbed $1.75 to $41.69. The CBOE Oil Index (OIX: news, msgs) rose by 2 percent to 307.4 as shares of Kerr-McGee (KMG: news, msgs) added $2.06 to trade at $64.19. Natural gas hits record high at $10 Strong demand for heating fuels in the Northeast caused natural gas futures to touch the $10 level Tuesday, for the first time ever. On the New York Mercantile Exchange, January natural gas rose to a record, all-time high at $10 per million British thermal units. It was last at $9.64, up 6.1 cents. January heating oil, another commodity used for heating homes, rose 4.45 cents, or 5 percent to 92.25 cents a gallon. Natural gas futures have hit record highs for the last several weeks, boosted by cold weather in most of the U.S., especially in the Northeast, which is the nation's largest consuming region for energy due to its dense population. At last count, U.S. natural gas supplies were down 158 billion cubic feet and were 630 billion cubic feet below last year's level. Over in the oil sector, crude futures prices climbed on the back of mounting concerns that OPEC may cut its oil output in January. February crude futures rose 39 cents to $26.57 a barrel. January unleaded gasoline gained 0.71 cents to 74.80 cents a gallon. Early Tuesday, OPEC President Ali Rodriguez said OPEC must take action to prevent a "collapse" in oil prices. OPEC has indicated over the last two weeks that it may decide to lower its production quota if crude prices fall below its targeted price range of $22 to $28 a barrel. The target was breached on Thursday, when the cartel's crude basket price fell to $21.64. OPEC's price band can be triggered if prices remain below $22 for 20 straight days. -------------------------------------------------------------------------------- Myra P. Saefong is a reporter for CBS.MarketWatch.com in San Francisco. www2.marketwatch.com