Natural gas futures appear to be experiencing short-covering just before tomorrow’s weekly storage data release. Natural gas futures are up 32 points today, but .13c above last week’s contract low near $2.52 per British thermal unit at New York’s Mercantile Exchange.
Tomorrow’s storage report by the US Energy Information Administration is anticipated to show an additional 80B cubic feet of inventory for the week ending April 17th – which would be the most on record for the week. Natural gas supplies also rose by 45B cubic feet the week earlier in-line with the five-year average of an increase of 46B cubic feet for this time of year.
Barb Levy, chief director for The Fox Group’s futures division in Chicago, shared her fundamental analysis regarding the current natural gas futures situation by stating, “It’s hard to imagine a scenario that could rally this natural gas (futures) market one month into Spring.” Levy adds, “With natural gas storage topping 80% above year-ago levels, I wouldn’t be surprised to see natural gas (futures) continue the choppiness until production slows down.”
Natural gas futures trend is down with no bottom yet in sight. These low natural gas prices are a real plus for the consumer.
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