The August natural gas futures contract slipped 1.1 cents to$2.439 Thursday, as traders scrambled to finish their businessahead of the long fourth-of-July weekend. “Today was pretty muchjust position covering ahead of the weekend,” a broker told GPI. “Idon’t think anyone was too concerned with, or had the goal of,moving August outside of its trading range,” he said. For thatreason, he was not surprised to see technical support at $2.38hold.

Although that may not be the case when trading resumes today,hotter weather may keep cash prices in check. Temperatures areexpected to be much above normal in Texas, Oklahoma, and other keygas consuming southwestern states this week, so that could help popcash prices when physical trading resumes today. “Everyone knowsthat the hot weather is coming, but not many people were in aposition to do anything about it last week. That could lead to ascramble [this] week,” a trader said.

Should prices move higher, look for technical resistance at$2.48 and $2.52, a broker told GPI. He places support for August at$2.38, followed by $2.32.

©Copyright 1998 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press,Inc.