Natural gas futures reached 18-year lows (of $1.632) only last Thursday, but have been rallying ever since. Natural gas futures are up almost .07 cents today currently trading at $1.78 per btu at the New York Mercantile Exchange.
Natural gas traders are said to be closing bets for lower prices ahead of the US Energy Information Administration’s storage report due for release tomorrow. Domestic natural gas storage reportedly stands at 2.536T cubic feet – 31.3% higher than levels this time last year, and 26.3% above the five-year average for this time of the year.
Danielle Bourbeau, a commodity broker for Capital Trading Group in Chicago, shared her fundamental view of the natural gas futures market by stating, “Demand for natural gas this year just didn’t materialize because of the El Nino phenomena and storage just keeps adding up.” Bourbeau adds, “Lower natural gas prices is a real plus for consumers.”
Natural gas futures trend is down with no “bottoming” formation yet in sight. At these current levels 6% higher off its lows, natural gas futures appear ripe for another selling short opportunity.
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