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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (23725)	6/12/2003 4:10:14 PM
From: Frank	Read Replies (2) \| Respond to of 206160

Russ--Jim has made a convincing case that flush production is at work to a certain extent. I believe that. The big question is how much and how long. I reduced my holdings yesterday and will watch for a while--still quite positive but its a psychological guessing game at this point--at least until we get some hot weather--Frank

To: russwinter who wrote (23725)	6/12/2003 6:43:13 PM
From: Archie Meeties	Respond to of 206160

Weather. If you account for degree days I think we're actually ahead of last year in consumption.

To: russwinter who wrote (23725)	6/12/2003 7:46:59 PM
From: quehubo	Read Replies (1) \| Respond to of 206160

Russ: Electric demand, like gasoline demand, has been whacked with this cold weather. We have been in an environment for weeks now that is as good as it gets for reducing demand. Today's injection was the first full week that had the full impact of June's futures price which was almost $1 higher than May's. Also spot prices have been quite high. Clearly a combination of weak weather related demand, demand destruction, fuel switching and FLUSH production is at play here. In the near term focus one must assume at these prices that we wont have a hot Summer, that we wont have any Hurricanes and that production response will be accelerated now. So my focus will be on seeing how the market responds and how best to play a set up for the Winter. I let go quite a bit today on the news and have the combined satisfaction of having the most cash at the highest portfolio value ever. We have the perfect setup here if we get some demand resurrected and some futures locked in for supply. Flush production disappears and maybe some bullish events show arrive. At these prices I doubt anyone will be burning #2 oil and maybe some demand sitting on the sidelines will return.