Storage Hype Lifts Futures to Retest $2.60
Fueled by follow-through buying on the heels of Monday advances,
the futures market ambled higher yesterday as traders weighed the
impact of bullish news expected to be released this afternoon. The
September contract finished up to 2.3 cents at $2.598. Impressive
advances were also seen in the out months with the October,
November and December contracts notching similar gains.
"It was hard to be a seller [Tuesday]," commented one trader who
was hesitant to sell yesterday's rally ahead of the release of
fresh American Gas Association storage data today. "The cash market
is pretty quiet, but after last week's volatility I do not want to
be short futures."
Another trader went as far as to classify the range of storage
injection expectations. "Below 30 [Bcf] is bullish, 38-50 [Bcf] is
neutral and above 50 could send the market lower," he predicted.
However, despite moderating temperatures in many towns across the
U.S. this week, he feels it is more important to look where we are
and not where we came from. "Temperatures are normal for this time
of year. That may represent a cool-down from last week, but the
last time I checked normal in August was still pretty hot."
©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.