February 11, 2002; Six-Year Futures Fluctuate in Narrow Range

Six-year oil price fluctuated down in the past week to $20.71 from $20.97, while six-year natural gas fluctuated up to $3.15 from $3.11 (see Chart).  Present Value of natural gas in three royalty trusts that we cover in weekly detail was restored by 1%, in line with six-year natural gas.  There is widespread expectation of weakness for natural gas price about a month from now when a draw down deadline looms for gas stored in underground aquifers.  We counsel that buyers of our recommended natural gas stocks hold back some purchasing power even though most price weakness may be reflected in markets already.