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July Bucks Recent Trend, Bubbles Higher

July Bucks Recent Trend, Bubbles Higher

Fresh off a 5-cent rally in Wednesday night's Access session the futures market bulldozed higher yesterday amid light speculative buying. July finished its first day as the prompt month up 7.2 cents to $2.282, after notching a $2.30 high early Thursday afternoon. Estimated volume was heavy, with 85,664 contracts changing hands.

Sources polled by NGI agreed that the Wednesday evening release of storage data by the American Gas Association triggered the advance. The AGA said 73 Bcf was injected into underground storage facilities last week and that figure fell short of the important benchmarks of market expectations, and both last week's and last year's refill.

However looking ahead, a Midcontinent marketer feels demand rather than supply will hold the key to price direction for June. "Weather remains the wildcard. Everyone pretty much knew where storage was going to be. When the Midwest gets hit with its first real blast of hot air and the electric generating load kicks in, then we will see if prices move higher as people scramble to find gas."

In daily technicals the New York-based Pegasus Econometric Groups pegs support at $2.17 ahead of $2.13 and $2.04. Resistance stands at $2.32 and $2.375, the group said.

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