Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Dennis Roth who wrote (92978)	11/2/2007 7:45:42 AM
From: quehubo	Respond to of 206323

The market is hoping for a cool start to Winter with November and December forecasted much cooler than last year. I am leary that the weather will actually play out as forecasted and I am also concerned about curtailed production coming back on with the first draws. I am thinking we could see some real weak draws.

To: Dennis Roth who wrote (92978)	11/2/2007 8:13:52 AM
From: Tommaso	Read Replies (1) \| Respond to of 206323

You may be right, but the BTU equivalent price of natural gas as compared to crude would be over $15. It's a very loose equivalence, but it does tend to revert. But as you say, that's an awful ot of gas in storage and it will take a while to work it off. A bargain for whoever can use it.

To: Dennis Roth who wrote (92978)	11/2/2007 9:03:41 AM
From: Ed Ajootian	Respond to of 206323

Dennis, I agree with your thoughts except the thought that LDC's are in no hurry to buy gas on the spot market. With a buck & half premium between the December futures contract and the spot market I would respectfully submit that the situation ought to be quite the opposite, especially now that we are now basically in storage draw mode (or if not, just days away from that), so any issues regarding maxing out storage are withering away as the weather gets colder. If you have the choice of pulling gas from storage or keeping it there and buying spot for $1.50 less than what you can sell that gas for in a month, what would you do?