Daily Market Commentary October 24, 2001

AGA REPORT IGNITES PRICES. . .

 Natural gas futures pogo sticked higher in active inventory report driven trading Wednesday on the New York Mercantile Exchange. The weekly inventory report released by the AGA showed a build of only 25 BCF, well short of industry expectations of 40 to 50 BCF and traders bid prices up. Significant producer selling was noted and traders expect a higher open tomorrow. . .

 At the close, the November futures soared $.300 to $2.981 per MMBtu. The December contract jumped $.236 to $3.171 per MMBtu. . .

 "Expectations were for a 50 build on the AGA's, and that generated a short
covering rally," said a New York floor trader. . .

 "Locals were putting on long positions throughout the day and that brought prices up to $2.70, and once the report came out prices surged higher." . .

 "There was also a lot of producer selling December and January contracts. Technically the market looks great, and funds and managed accounts who
follow strictly technicals are long," he said. . .

 "On the post close prices were still strong. November was 8 bid at 9, and I look for a strong open tomorrow," he said.



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