Daily Market Commentary October 23, 2001

PRICES RETREAT . . .

 Natural gas futures gave back some of the recent gains in busy trading today on the New York Mercantile Exchange. Traders were pleased by supportive technical factors and a healthy cash market, and when initial apprehension that yesterday's price advance would continue proved unfounded, traders sold contracts. . .

 At settlement, the November futures slumped $.126 to $2.681 per MMBtu. The December contract outdid the November dropping $.152 to $2.935 per MMBtu . . .

 "The futures have put up some great technical numbers recently, but
this gave new life to the bears," said a New York floor trader. . .

 "Right now the locals are willing to push prices higher and commercial traders are also bullish," he said. . .

 "The producers aren't selling, they'll wait until the 3 day averaging
period and either make delivery or trade out on an EFP," he suggested.



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