While many expected a bearish storage report (78 Bcf ofwithdrawals) to result in further declines in the March futurescontract on Thursday, the opposite took place. Borrowing a phrasefrom Federal Reserve Chairman Alan Greenspan, one trader said”irrational exuberance” took over at the New York MercantileExchange yesterday, which pushed the March contract up 6.4 cents tosettle at $1.829.
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AGA Shows 58 Bcf Rise in Working Gas Capacity
The American Gas Association sent out a confusing market signalyesterday, reporting 45 Bcf of withdrawals for the week ending Nov.13 but actually showing more gas in storage than was reported inlast week’s survey. The peculiar changes, the association said,resulted from 58 Bcf increase in the full level of working gas inthe country. The AGA said 20 of the more than 40 storage companiessurveyed reported increases in working gas capacity. The newestimated full level of working gas is 3,248 Bcf, which includes a29 Bcf increase in working gas capacity in the Producing Region, a21 Bcf rise in the Consuming Region East and an 8 Bcf increase inthe Consuming Region West.