Thursday, March 16, 2006

Demand down by 20-30 mcm

For each 10 mcm of demand reduction that is 70 mcm fewer taken from storage over a week. It looks now as is potentially the increase in price has reduced demand by about 25-30 mcm or even over 30 mcm.

The job losses and layoffs caused by this will be substantial. The upside is that we are probably safe from a gas emergency until beyond Tuesday next week. After then, however, depends upon the weather - as usual.

It, obviously, asks the question as to whether this is really a sensible way to handle imbalances of supply and demand.


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