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Re: The case for NG equitiesLets then look at the fundamentals underlying these futures increases. 1. Drilling leading to N.A. production declines. 2. LNG exports compared to last year have of late shown a declining deficit and now are actually in excess of last year. That is a significant trend that bears watching, but the market is sure paying attention. 3. Associated gas production is declining, and the numbers are large. 4. Industrial demand is increasing over last year. 5. We are seeing August temperatures moving higher suggesting increased heating demand that will reduce the inventory surplus before winter. 6. The only negative is high inventory levels which are being reduced slowly, but the trends mentioned above will increase the speed of a surplus reduction just in time for the heating season. 7. Lastly natural gas stocks and natural gas commodity prices are all moving in the right direction suggesting a breakout. I have not been this bullish in a long time. Take care Jim |
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