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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Lucretius who wrote (17369)	3/31/1998 9:37:00 PM
From: Lucretius	Read Replies (3) \| Respond to of 95453

When are you guys going to believe me about gas, get in before the mkt figures it out. Check out the one yr line chart on the site below, you'll see what I'm talking about. oilworld.com Tuesday March 31, 8:04 pm Eastern Time Late NYMEX Hub natgas again rallies to new highs NEW YORK, March 31 (Reuters) - NYMEX natgas futures continued to march higher late Tuesday in an unexpectedly active session, with firmer physical prices and more technical buying driving the complex to new contract highs, sources said. At 1425 EST, May was up 8.6 cents at $2.495 per million British thermal units after climbing late to a new high of $2.505. June, which also hit a new benchmark today of $2.545, was 7.6 cents higher at $2.525. Most other months were up by three to 7.5 cents though some year 2000 contracts were still down slightly. ''Near-term fundamentals are not driving the market. I think this is about expectations for the summer. My guess is we're due for a pullback, but it's still a buy-the-dips market,'' said one Texas-based trader, noting firm summer electric prices, forecasts for a hot summer and concerns about dwindling coal supplies due to rail shipping delays. While mild weather this week in most regions has trimmed heating and cooling loads, traders said the steep contango between cash and paper, now almost 15 cents, still favored up front buying, a factor that should underpin the physical market near-term. Forecasts call for cooler weather by Wednesday for most of the nation, with the East expected to slip to seasonal or slightly-below seasonal levels by the weekend. The Midwest at midweek is expected to dip to about normal, then warm to several degrees F above by the weekend. Texas temperatures are forecast to range from normal to eight degrees above for the period. Technical traders, noting May blew through key resistance Tuesday on its way to a series of new contract highs, said a strong close today projects a measured move to the mid-$2.60s. Interim resistance was seen at $2.505-2.51, today's high and a spot continuation high from December. Further selling was expected at $2.57 and $2.812, also prominent December spot continuation highs. May support was seen at the previous contract high of $2.46 and then at the $2.33 double bottom. Next support was pegged at $2.30, the fifty percent retracement point. Major buying was expected at the $2.135 recent low. Withdrawal estimates for Wednesday's weekly AGA storage report range from a 10 bcf build to a 40 bcf draw. For the same week last year, stocks declined one bcf. In the cash Monday, Gulf Coast swing quotes firmed almost a nickel to $2.30 or better. Midcon pipes were more than five cents higher in the mid-$2.20s. Chicago city gate gas was talked in the mid-$2.40s, while New York was flat to up slightly in the mid-to-high $2.50s.