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

To: jim_p who wrote (23815)	6/16/2003 9:10:43 AM
From: jim_p	Respond to of 206202

Raymond James Energy Stat of the Week, published 6/16/2003. With a record 125 Bcf natural gas storage injection last week, our phones have lit up with questions about the sustainability of these higher gas prices and the realism of our overall bullish energy theme. (My, how quickly the herd can change direction) Our take on this large gas injection is that this is exactly how an efficient gas market should work. As we have said many times before, the gas market will find the appropriate gas price that kills enough price sensitive gas demand to re-balance the system and get summer ending gas storage to a comfortable level. Assuming the recent gas storage data is accurate (and that is a big assumption), it now appears that the equilibrium gas price is somewhere between $5/Mcf and $7/Mcf.