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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: sea_biscuit who wrote (90274)	1/8/2008 1:49:37 PM
From: Horgad	Respond to of 110194

Probably because converting stuff (like cars, trucks, trains, airplanes, etc...) from using oil to natural gas and visa versa is not always easy. So there are two different markets for them even though the BTUs are comparable. However, given enough time (if capitalism still works at all in this country) I suppose that the conversion will happen and the BTUs per dollar will start to swing the other way.

To: sea_biscuit who wrote (90274)	1/8/2008 2:46:16 PM
From: Crimson Ghost	Respond to of 110194

You are not the only one who thinks natural gas is MUCH too cheap relative to oil. People who think this way can put their money where their mouth is via the recently established natural gas fund UNG. This is the natural gas equivalent of USO. Very volatile but very cheap IMHO.

To: sea_biscuit who wrote (90274)	1/8/2008 9:48:10 PM
From: dave9	Read Replies (1) \| Respond to of 110194

There is more NG is storage than the last 5 year average. Usage is down with this relative mild winter. Also, noting that the gas in storage is used up with a over stressed economy (running NG fed electrical generators trying to keep up with the power demand). We are not exactly going to have peek electrical demand with a recession. " Working gas in storage is well above the 5-year average for this time year, indicating a ready supply source to meet peak demand as the winter heating season progresses." from tonto.eia.doe.gov You should keep up with the above site. Earlier in the season the reserves basically filled up with the max amount of NG it will hold. I am not sure if that is true but the amount in storage is larger than the last 5 year average and some wells were shutting down. NG is going to stay low for a while. Relatively low that is. Oil will follow when we all get laid off and don't drive as much.