"The market posted a strong recovery after recording five-week lows in the overnight session. The weakening in the US dollar, and an OECD report raising economic growth forecasts for China, were mentioned as drivers behind [Thursday's] price strength. However, we feel that the larger initiative was simply provided by the fact that the complex had become oversold on a short-term basis,"
and as players bought back positions, prices strengthened, independent energy consultant Jim Ritterbusch said in a report Thursday evening.

"Ukraine has assured us that it is securing transit for export gas,"
he said, noting Gazprom remains in close contact with the Ukrainian authorities. The comments follow an explosion late Thursday on part of the Urengoi-Pomary-Uzhgorod trunk pipeline, which carries Russian gas to Europe. Uzhgorod is on the Ukraine-Slovak border.

Updated: Dec 7, 2007