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Enron Mail |
Daily Market Commentary ATTENTION . . . ATTENTION . . . ATTENTION . . . BEGINNING DECEMBER 3 THE
DAILY BRIEFS WILL BE AVAILABLE ONLY WITH A SUBSCRIPTION TO GASTRADER NEWSLETTER. WITH GASTRADER WEEKLY NEWSLETTER AND THE DAILY BRIEFS NOT ONLY WILL THE SHORT TERM OUTLOOK FROM THE FLOOR OF THE NEW YORK MERCANTILE EXCHANGE BE AVAILABLE, BUT THE LONGER TERM OUTLOOK COMPLETE WITH NO NONSENSE TRADING RECOMMENDATIONS WILL BE COVERED AS WELL. CHECK OUT THE WEBSITE FOR A SAMPLE NEWSLETTER, SIGN UP FOR A FREE 5 WEEK TRIAL SUBSCRIPTION AT GASTRADER.NET. OR RESPOND TO THIS E-MAIL IF INTERESTED IN A SPECIAL DISCOUNT. . . . . . . October 29, 2001 FUTURES SURGE HIGHER . . . Natural gas futures scored triple digit gains in typically active expiration day trading Monday on the New York Mercantile Exchange. Prices opened higher and continued to advance closing near the highs of the session. Longer term traders see prices reaching a threshold of resistance approximately 16 cents higher. . . At the end of the day, the November contract rose $.161 to $3.202 per MMBtu, and the December tacked on $.156 to $3.339 per MMBtu. . . "The marginal cost for natural gas currently in storage for this season is about $3.50 per MMBtu," says Tom Saal, Vice President Pioneer Futures, Miami. . . "That should act as a ceiling for any further advances in natural gas prices," he said. . . In the short term prices are rising to marginal cost because the threat of increasing demand in part due to winter weather forecasts is rising daily. . . As prices approach that level, $3.50 should act as resistance, for should prices rise above marginal cost, buyers would have an incentive to utilize the lower priced gas at the expense of higher priced market gas. For the most complete information available subscribe to GasTrader at http://gastrader.net Bill Burson 120 Summit Blvd. Englewood, Colorado 80110 Tel (303) 761-7470 * Fax (303) 761-8662 (To be removed from this list send email to burson@gastrader.net)
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