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

To: Keith J who wrote (62050)	3/25/2006 10:12:00 AM
From: quehubo	Respond to of 206291

The action this week drove home the point to me, the futures pricing is not some complex outcome of producers and end users. But it the result of massive speculation that something will happen to reduce supply. The Winter futures are a little easier to understand because some must plan on a cold Winter, at which the alternative is heating oil. But between now and December 1 we are 500 bcf ahead of last year and I the supply wont be cleared at these prices. The alternative in Winter is heating oil, the alternative in Summer is coal. That floor is around $5.50 mbtu some $2 lower.