Wednesday, October 8, 2008

UPDATES ON OCT 8 2008

OCT 8 WEDNESDAY

SHORT TERM TREND : BEARISH

LONG TERM TREND ; BEARISH

S1 RS 326 , S2 RS 323

R1 RS 331 , R2 RS 334

STAY SHORT AT RESISTENCE.

Natural Gas Futures Decline on Concern of Decreasing Demand .

Natural gas fell in New York on concern that measures


from central banks to prop up economies around the

world won't be enough to prevent further slowing.

Natural gas, crude and gasoline had surged, with oil rising

as much as 6 percent, after Australia's central bank cut its

benchmark interest rate the most in 16 years and the

Federal Reserve acted to boost short-term lending.

Natural gas for November delivery fell 6.7 cents, or 0.9

percent, to settle at $6.768 per million British thermal

units at 3:08 p.m. on the New York Mercantile Exchange.

Gas earlier touched $7.011. The futures have shed 50

percent since reaching a 30-month closing high of

$13.577 per million Btu on July 3.

The Federal Reserve Board today created a special fund to

support the U.S. commercial paper market to prevent a

freeze-up in short-term debt used by companies to finance

operations. The Australian central bank cut interest rates

by 1 percentage point, the biggest drop since 1992, to

reduce borrowing costs.

A slowing economy would cut demand from commercial and

industrial users of gas, which accounted for 9.64 trillion

cubic feet, or 42 percent, of consumption in the U.S. in

2007. Interest rate cuts and money injected by central

banks may ease concern of a significant recession.

Gas in storage probably rose 85 billion cubic feet last

week, according to the median of six analyst estimates

compiled by Bloomberg. The average change for the

period is a gain of 69 billion.

Inventories of natural gas in the week ended Sept. 26 were

3.11 trillion cubic feet, the Energy Department said Oct. 2.

Supplies are expanding at a pace that would put them

slightly above the five-year average of 3.327 trillion

cubic feet at next month's start of the cold-weather

season across much of the U.S.


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