For the second trading session in a row, early selling pressurewas reversed in afternoon trading allowing the market to close nearits daily high. The July contract notched a $2.325 low both Fridayand Monday, but settled back up above $2.37 both days. Evenestimated volume figures were similar with yesterday’s 43,630falling just short of Friday’s 45,070 mark.

“Lack of leadership” is how one prominent industry analystassessed the market’s inability to make headway in eitherdirection. “There was no followthrough selling once July dippedinto the low $2.30s. There seems to be some trepidation out thereahead of this week’s storage report,” he continued. Althoughpreliminary estimates are slow to filter through the grapevine thisweek, some market watchers suggest that figures could be as low ashalf the 104 Bcf injection from a year ago.

In addition to the storage situation, traders continue to pointto cash market prices, which have stayed strong despite thesomewhat ambivalent futures market direction, as an indicationthere is solid demand for physical molecules of gas. Daily GPI’sHenry Hub average for today is $2.29, almost a dime more than itsBidweek average of $2.22.

For what it’s worth, tropical depression No.1 was upgraded toTropical Storm Arlene over the weekend. As of 5 p.m. Monday, Arlenewas 275 miles southeast of Bermuda and expected to continue to theNorthwest. Maximum sustained winds are near 50 mph and tropicalstorm warnings are in effect for Bermuda. Wind sheering andrelatively cool surface sea temperatures indicate the possibilityfor only minimal strengthening, the National Weather Service said.

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