Title: Monthly Gas Briefing: A Shift Toward Winter
URL(s):

http://www20.cera.com/eprofile?u=35&m=2748;


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NATURAL GAS PRICES REBOUND AS HEATING SEASON APPROACHES

Despite high storage levels, with heating season coming, the Henry Hub cash
market has bounced back from early October lows to levels near $2.40 per MMBtu.
However, weak market fundamentals, including a sluggish economy and increased
US and Canadian supplies, will mitigate the usual winter price rise. CERA
expects an average Henry Hub price of $2.35 in November.

*  Although inventories are close to record levels, storage pressures are
increasingly unlikely to drive cash markets down significantly this year.

*  Gas demand will average 14 percent lower than a year earlier; residential
and commercial sectors show a decline with a return to normal weather, while a
weak economy offsets the return of ammonia and dual-fuel loads in the
industrial sector.

*  Regional storage inventories and weak regional demand should keep upward
pressure off of regional differentials. The Northeast examines security issues
around LNG shipments.

**end**

Follow above URL for complete report (6 printed pages).






E-mail Category: Monthly Briefing
CERA Knowledge Area(s): North American Gas


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