Firm cash, AGAs drive NYMEX Hub gas higher late

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In spite of forecast milder temperatures for most of the country, the march on March natural gas futures continues today. Now, what does OPEC have to do with natural gas? (OK, how ELSE could that be worded?)

-- Bugeye (New@Lurker.com), February 10, 2000

Answers

OPEC doesn't have much of anything to do with the natural gas that is consumed in the US. But Russia has plenty to do with it; not so much in the US, but it supplies about two-thirds of the natural gas consumed in Europe. The other issue affecting natural gas is that it is used to produce about 53% of the propane (which is entirely produced in the US) consumed in the US. (47% of the US' propane supply is derived from crude oil.)There are propane shortages now cropping up in Iowa and Nebraska. The Northeast has been short of propane for a couple of weeks now, but an accident at a major pipeline in Nebraska, on Monday, helped curtail supplies to all of western Iowa. Add to the pipeline break the fact that suppliers have been on rations, (oops...I meant to say allocations) there are significant shortages looming. If there weren't a shortage of natural gas and crude oil in the US, there couldn't be a propane shortage. Forecasters are calling for temperatures to dip into the teens in parts of Iowa over the weekend, indicating that some residents could end up out in the cold, due to the shortage of propane.

-- (cashtradr@aol.com), February 10, 2000.

Cash,

I have heard more stories on the shortage of oil this evening than I have heard the rest of the month combined. ABC news, public radio, and CNN have all run stories. They all blame OPEC.

I find that OPEC is a long shot, since no one has indicated that OPEC is purposefully dropping supply rates below those held since last March. I guess a restriced supply rate could gradually decrease reserves, and then spark a cost blowout, but it should not have been the surprise everyone else proclaims it to be.

Given all of these issues and the poor excuses for oil, what in the heck is wrong with gas? B/E is correct - propane and natural gas futures and sopt also keep increasing (on average) each week. Obviously OPEC and the Russians are not to blame. We cannot blame the Iowans. Doesn't that just leave either a HUGE coincidence or Y2K as the culprit? As a reasonable person, I must beleieve that this is the result of a Y2K problem. Perhaps someone can post a better expaination of all these issues, but please do not blame OPEC or the weather.

Sincerely,

-- Uhhmmm... (JFCP81A@aol.com), February 10, 2000.


Wow. Someday I will will get the proof reading thingy down better.

Sorry,

-- Uhhmmm... (JFCP81A@aol.com), February 10, 2000.


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