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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