Sunday, September 21, 2008

UPDATES ON SEPT 20 2008

SEPT 20 SATURDAY

Natural Gas Declines as Supplies May Be Ample Before Winter .

Natural gas futures fell for a second day in New York amid

speculation that U.S. production will be strong enough between

now and Nov. 1 to ensure ample supplies to meet cold-weather

demand.

Inventories advanced 67 billion cubic feet in the week ended

Sept. 12 to 2.972 trillion cubic feet, putting supplies 2.1 percent

above the five-year average, according to the U.S. Energy

Deoartment.

Natural gas for October delivery fell 9 cents, or 1.2 percent, to settle

at $7.531 per million British thermal units at 3:12 p.m. on the New

York Mercantile Exchange. Prices rose 2.2 percent this week.

Gas supplies last week were 2.1 percent above the five-year

average, the department said yesterday. The surplus narrowed

from 2.9 percent in last week's report. The five-year average

for gas in storage at the start of the cold-weather-demand

period on Nov. 1 is 3.327 trillion cubic feet.

Speculators and consumers of the heating and industrial fuel

are banking on increased onshore production to bolster

output and keep prices from running higher.

Domestic gas output is expected to increase by 7.8 percent this

year, particularly from fields in Texas and Wyoming, the Energy

Department said in its monthly Short-Term Energy Outlook

on Sept. 9.

Crude oil has dropped 13 percent this month and gasoline

has fallen 16 percent.


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