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November 21, 2001

NEED FOR COLD WEATHER CITED . . .

 Natural gas futures retreated in typically busy inventory report driven trading Wednesday on the New York Mercantile Exchange. Attentiion was focused of the release of the weekly AGA inventory figure which showed a
moderately bearish 15 BCF build. Earlier expectations were from a draw of 10 BCF to a build of 10 BCF, and with working gas inventories brimming, traders thought the price decline should have been greater. Short term traders hypothesize a Monday collapse predictated on revised weather. . .

 At the closing bell the December futures slipped $.039 to $2.813 per MMBtu, and the January eased $.050 to $2.991 per MMBtu. . .

 "I think that we come in on Monday with a revised 15 day forecast, and this
market goes 30 cents south. At that point the market would be primed for a rally," said a New York floor trader. . .

 "2.97 is a big (technical resistance) number, and traders find it hard to believe that the market will rally any more without an improvement in the
fundamentals." . .

 "I think what happens is thatthe market gets too short, it panics out and
you have these rallies. (E.D.&F.) Man has done their best to goose the market
higher. It's hard to figure out who is long at this point. . .

 The Man/Enron traders are still in the ring and they are executing orders
for Enron, but their clearing relationship is over," he noted. . .

 Other traders see a need for some quick cold weather. . .

 "I'm surprised the market didn't react more negatively to the AGA number,"
said Phil Flynn, broker analyst with Alaron, Chicago. . .

 "There is speculation that some of the support to the market is Enron related because they are dumping positions, and many traders are saying that
the market could get hit hard on Monday. . .

 To move this market higher it would have to get real cold, real quick and last real long," he said.



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