Short

California may have gotten the short end of the power stick lastsummer, but according to a FERC staff report, it may just have beena matter of degree days separating other regions of the countryfrom a similar fate.

Natural gas production is on the upswing, according to EnergyInformation Administration’s November Short Term Energy Outlook.The agency said the “torrid pace” of gas drilling activity in NorthAmerica is starting to pay off. As a result, wellhead gas pricesshould ease further away from the $5/Mcf level through 2001 thanpreviously projected. Prices this winter, however, should stayabove $4.

California may have gotten the short end of the power stick lastsummer, but according to a FERC staff report, it may just have beena matter of degree days separating other regions of the countryfrom a similar fate.

It doesn’t matter whether forecasters predictions of an earlycold winter materialize or not. Under any short-termweather/storage scenario, Salomon Smith Barney (SSB) continues tobe very bullish on the outlook for natural gas prices.

It doesn’t matter whether forecasters’ predictions of an earlycold winter materialize or not. Under any short-termweather/storage scenario, Salomon Smith Barney (SSB) continues tobe very bullish on the outlook for natural gas prices.

Buoyed by cold weather in the Northeast U.S. and in sympathywith higher heating oil prices, natural gas futures checked higherin light holiday trading Monday as traders covered shorts initiatedin last week’s sell-off. At the closing bell the November contractwas 14.2 cents higher at $5.15.

For the sixth week in a row, natural gas futures climbed higherFriday as traders once again eschewed the short side of the marketahead of the weekend. After setting the tone with a $4.60 openingtrade, bulls ran the show at Nymex Friday, boosting the promptcontract 8.8 cents to close at $4.628.

The Energy Information Administration warned last week in itsShort Term Energy Outlook that recent natural gas market activity”reveals the backdrop of vulnerability…..to potential supplyshortfalls,” particularly in light of increasing demand from thepower sector and the winter heating season approaching.

The Energy Information Administration warned yesterday in itsShort Term Energy Outlook that recent natural gas market activity”reveals the backdrop of vulnerability…..to potential supplyshortfalls,” particularly in light of increasing demand from thepower sector and the winter heating season approaching.