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Natural Gas Prices

from ChartWorks:: published by Institutional Advisors

Bob Hoye
Technical observations of RossClark@shaw.ca
December 6th, 2006

While this week’s inventory drawdown of 32 Bcf makes a good headline, the cumulative decline is running well below the pace that helped create spike highs in the price in 1995, 96, 97, 00 and 02. Bulls should continue to keep a close eye on their weather maps in hope of much colder weather. (Longer-term, the models following the first quarter of 2007 look exceptionally bullish).

Arrows identify when inventories were at multi-year highs in the first week of September and again at the peak in November

Working Gas in Underground Storage
(Last week of November marked in red)
Inventories are now four weeks past their peak and can be expected to work lower into March.

 

Bob Hoye
December 6th, 2006

EMAIL:: bobhoye@institutionaladvisors.com
CHARTWORKS WEBSITE:: www.institutionaladvisors.com

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