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

To: quehubo who wrote (37217)	12/8/2004 2:44:08 AM
From: schrodingers_cat	Read Replies (1) \| Respond to of 206184

I'm thinking that one of the things that must be going on is a drop in the industrial demand for gas. The last time we had sustained prices over $7 was 2001 and what happened then was that half of the US fertilizer industry shut down along with other chemical operations like methanol producers. Agricultural commodities prices have tumbled in recent weeks, so maybe demand for fertilizer will be down next year. Put that together with $8 NG and it would not surprise me at all if the fertilizer industry has shut down again. I don't know how quickly they might come back when the price falls but in 2001 it wasn't fast enough to stop a price collapse. The lesson of all this is that bad things happen to demand when NG prices head over $7. That all said I'm not as bearish as the rest of you. There seems to be plenty of technical support for NG just under $5. Oil is also sitting on support and is due to rebound a little. It really wouldn't take much to send us to $55 again.