Futures Ratchet Higher in Technical Trade
Adding to Monday's gains the natural gas futures continued
higher at Nymex yesterday as technical buying lifted the June
contract in active trading. And with that 4.8-cent rally to $2.359,
June was able to successfully fill in $2.31-33 daily chart gap and
notch its highest daily close in more than a year.
Lack of tangible supply or demand factors forced even the most
dyed-in- the-wool fundamental traders to admit that the market's
recent advances can be blamed solely on technical dealings. "This
is a purely technical move. Futures are moving higher and cash is
trying to keep pace. There is no weather to speak of in Texas or
the Southeast," offered a Houston marketer. He added that cash
prices moved higher despite the displaced demand associated with a
number of nuclear power plants coming back off planned maintenance.
However, it will be hard to ignore fundamental factors this
afternoon when the American Gas Association releases its weekly
storage report, which market observers believe will feature a 20-40
Bcf injection. A figure of that magnitude will pale in comparison
with last year's 78 Bcf tally, further compressing the 175 Bcf
surplus to last year.
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