Prognosticators

Federal government prognosticators this week reported thatdemand for natural gas will slow considerably during 2001, but spotgas prices nevertheless are expected to remain lofty throughoutmuch of the year in the face of tight gas inventories.

Many market prognosticators have realized recently that theirgas price projections are quite a bit too low for the rest of theyear because of declining gas wellhead deliverability, a reducedstorage surplus relative to last year and ever increasing gasdemand. The Energy Information Administration joined that crowdlast week, raising its wellhead price forecast for the fourthquarter 25 cents to $2.41/Mcf.

Many market prognosticators have realized recently that theirgas price projections are quite a bit too low for the rest of theyear because of declining gas wellhead deliverability, a reducedstorage surplus relative to last year and ever increasing gasdemand. The Energy Information Administration joined that crowdyesterday, concluding its wellhead price forecast for the fourthquarter was 25 cents too low. It raised it to $2.41/Mcf in its MayShort Term Energy Outlook.