RE:

i think thats rite -think curve flattens somewhat.back end the overvalued
part for now. i think we more consolidate sideways choppy for a few sessions
but if the present rate of injections continue the end users/utilties will
have to stop buying cuz of real phys limitations to take the gas into
storage. funds short but only 6% of open int and have covered later part of
last week.
think vol comes in again too.i think it sale 4.50 scale up-talked to some
others to o thinking it cant go below 4.00 so i actually think more the
suprise in the short term for a break of 4.00!! so who knows/cud work the
other way.
agree-disappointed at lack of producer selling-we had one deal come thur
but its been worked for months so not price relevant.
when are you in town next?

-----Original Message-----
From: John.Arnold@enron.com [mailto:John.Arnold@enron.com]
Sent: Sunday, May 13, 2001 6:34 PM
To: LaFontaine, Steve
Subject: Re:

most bullish thing at this point is moving closer to everyone's
psychological $4 price target and that everybody and their dog is still
short. next sellers need to be from producer community. saw a little this
week with williams hedging the barrett transaction but wouldnt say thats
indicative of the rest of the e&p community. short covering rallies will
get more common here. velocity of move down has slowed significantly for
good (except maybe in bid week). my concern is if we go to $4 and people
want to cover some shorts, who's selling it to them? might feel a lot like
it did when we were trying to break $5.