Crude oil has had a big part in supporting the natural-gas market. |
Industrial demand numbers are week. There clearly has been some more demand destruction on the industrial side in the past 8 to 12 months. |
It's getting real cheap relative to other fuels. |
The market is convinced we have enough gas. Even if you were to assume a return to normal weather, we will come out of winter with 1.5 trillion cubic feet, which is a good amount to have in the ground. |
The only saving grace to the market has been sporadic spurts of short covering. You still have lots of short interest out there and you're going to see periodic short-covering rallies. |
There's a consensus in the market that winter is over and there's a lot of gas around. We may have more gas available this summer than we have storage. |