Natural gas futures has made an about-face in the past two days back down near the $2.65 support level as the bearish demand outlook still appears bleak. Natural gas futures are down .065 cents (per btu – “British thermal unit”) today currently trading at $2.663 at the New York Mercantile Exchange.
Weather has been playing the biggest part of price discovery it seems, but shifting weather forecasts have kept natural gas futures from breaking out of their tight range most of this year. Natural gas futures six-month high’s are near $3.15 and six-month low’s resting at $2.60 per btu – a .45 cent range.
“With summer heat behind us, and inventories stacking up, it will take much to get this market (natural gas futures) moving higher.” said Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, regarding the fundamental assessment of the natural gas futures markets, Brady adds, “Even tomorrow’s energy administration storage report is expected to show an additional 80B cubic feet build-up in storage, so let’s see if there are any surprises.”
The trend for natural gas futures is down but with a very long and extended “bottom” coming into view. It will take prolonged upside action for an all out trend change to the upside, so for now let’s just enjoy this ultra-low consumer price.
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