Storage Report May Provide Direction for Natural Gas Futures

Natural gas futures appear to be sitting still near the high end of their trading range of nearly two months as energy traders patiently await new data on gas inventories to help determine the demand for the fuel. Natural gas futures are up more than .07 cents today currently trading just over $2.91 per BTU at the New York Mercantile Exchange.

The US Energy Information Administration’s storage report is due for release tomorrow with an expected increase of 95B cubic feet for the week ending July 3rd (an increase of 91B happened the week before). The total domestic storage at this time is reportedly 32.8% higher than this same week last year and 1.7% above the five-year average for this period in the year.

The expected news for the natural gas (futures) trade is certainly not bullish,” said Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, regarding the fundamental assessment of the natural gas futures markets. Brady added, Only a ‘surprise’ in natural gas news can probably create a breakout from this six-month sideways period.”

Natural gas is said to be the US’s top fuel used for everyday home use. With natural gas prices this low, its a real plus for the domestic consumer.

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