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
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
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
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.
©Copyright 1999 Intelligence Press Inc. All rights reserved. The
preceding news report may not be republished or redistributed, in
whole or in part, in any form, without prior written consent of
Intelligence Press, Inc.