Message-ID: <16522398.1075857584074.JavaMail.evans@thyme>
Date: Mon, 11 Dec 2000 09:04:00 -0800 (PST)
From: john.arnold@enron.com
To: slafontaine@globalp.com
Subject: re:summer inverses
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a couple more thoughts.  certainly losing lots of indutrial demand both to 
switching and slowdown in economy.  Big 3 automakers all temporarily closing 
plants for instance.  switching is significant and has led to cash in the 
gulf expiring weak everyday.  gas daily spread to prompt trading at 
$1....need some very cold weather to justify that.  this seems to be the test 
of the next 3-5 days.   Will the switching/loss of demand/storage management 
keep cash futures spread at reasonable levels or will it blow to $5+. Not too 
many years ago we had a $50 print on the Hub.  unless we get some crazy 
prints, you have to question the steep backwardation in the market.  

funny watching the flies in the front.  Bot large chunk of g/h/j at $.50 
friday morning.  probably worth 1.30 now.  crazy.  people have seen each 
front spread be weak since forever and are already starting to eye up g/h.  

what's the thoughts on distillates...  is it tight enough such that gas 
switching is the marginal mmbtu of demand and pulls it up or is the market 
too oversupplied to care?