Natural Gas

[just21]

Rumours from http://p088.ezboard.com/fdownstreamventurespetroleummarkets


* There was a shortage of gas production equipment and manpower before Katrina and Rita now the situation is critical.

* The damage to gas production is far worse than almost anyone can imagine.

* Gas production may never return to what it was before the storms.

* Damage assessment will not be completed until Christmas and repairs will not begin until after that.

* An estimate of daily oil production to be abandoned is currently on the order of 200,000 bbl/day and 1000 MMCFD of gas.

* When the markets notice that Gulf of Mexico production is not returning there could very well be panic.

* Gas price spikes this winter as high as $24 to $30 are not out of the question.

* If this winter is colder than usual, there may be gas rationing.

 

[tomcole]

Alkso, not many factories and NO homes can now switch from gas to oil.

Forget even thinking of switching to coal.

NG is a bull market!!!!!!!!!!!!!

 

[Sam123]

From $7 in June to $14 today. That's $35,000 per contract. Unlike oil, NG looks like a pig with wings.

 

[daddyeaux]

according to the Fed., inflation is "well contained".....

doesn't matter that you can't afford food or the gas to go get it, according to Al Green$pan, you needed to go on a diet anyway.

 

[paradox]

With most of the media focus on oil, I think NG in the U.S. market might well spike to 20 this winter.

 

[just21]

http://www.futuresource.com/charts/charts.jsp?s=NG&o=&a=D&z=610x300&d=medium&b=bar&st=

New highs this week?

 

[Sam123]

NG bottomed around 8.4 the other day. Any thoughts on this? Will it continue to ride the trendline, or is this one-trick pony finished and after its huge run-up it will blow off and chop below 6?

Perhaps after this wild ride, certain power utility companies here in the States (and I won’t mention any names) will learn how to do a little something called “hedging” next time. Sheesh.

 

[smilingsynic]

Quote from Sam123:

NG bottomed around 8.4 the other day. Any thoughts on this? Will it continue to ride the trendline, or is this one-trick pony finished and after its huge run-up it will blow off and chop below 6?

Perhaps after this wild ride, certain power utility companies here in the States (and I won’t mention any names) will learn how to do a little something called “hedging” next time. Sheesh.

I scaled in, and now I am scaling out. I am ready if it drops--I agree that 6 is probably as low as it will go. I have sell orders in the nid 9's and mid 10's.

Trading in the more distant months suggests that prices will probably not drop below this week's low, but you have to be ready in case they do.

Natural gas is simply the most volatile commodity out there. One has to trade it with sufficient capital and with enough patience not to be shaken out.

My guess is that traders/speculators drove it down, and that the commercials were buying. From what I have read, the problems assoc with Katrina will continue to plague natural gas, regardless of winter weather.

 

[joeyata1]

funny ng hit $8.48 the other day when ng inventories of huge ammounts announced. i live in the south and can't remember it ever this warmn for so long and the outlook is 60's threw the next 7 days . my ng bill has been udner 250 every month as i've barely had to run. ng looked weak friday as oil skied. i can see ng at $ 6 easy this summer we're i'll look in a 2year rate guarentee with my gas company

 

[smilingsynic]

Quote from joeyata1:

funny ng hit $8.48 the other day when ng inventories of huge ammounts announced. i live in the south and can't remember it ever this warmn for so long and the outlook is 60's threw the next 7 days . my ng bill has been udner 250 every month as i've barely had to run. ng looked weak friday as oil skied. i can see ng at $ 6 easy this summer we're i'll look in a 2year rate guarentee with my gas company

If it hits 6, consider it a gift, and buy.