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

To: Ed Ajootian who wrote (73772)	10/24/2006 7:10:33 PM
From: quehubo	Respond to of 206198

Cash was depressed because there was more supply than there was present demand and a path to storage. You are always looking at the front month contract which can be a ways off. I said earlier that residual would provide a soft ceiling at $7~ and then HO at ~$12 would be a very hard ceiling. In between NG prices could vary quite a bit. There is no reason to believe January could not trade at parity with HO if we have some decent weather between now and then. I am not so sure how much sensitivity there is for heating load between $7 and $12. Winter ng fired generation does not appear to be much of a variable. When electric loads spike many ng plants cant get the ng and must burn HO. I am thinking the market likes $7 for November, so long as the weather forecasts hold up.