The April Nymex contract crept 3.5 cents higher to $2.365 onWednesday, as traders continue to hold the spot month to smalldaily changes ahead of the contract’s expiration this Friday. Aprilmanaged to reach $2.40 before intraday profit taking drove thecontract back, a source told GPI. Total estimated volume came in at70,152 contracts.

An analyst believes that some traders remained on the sidelines,opting instead to wait for the AGA storage report to be releasedbefore executing their trades. If they were looking for a reportthat was dramatically different from expectations, they weredisappointed. The latest estimate came in at 78 Bcf worth ofwithdrawals, which was well within the expected range of 60-100Bcf, the analyst told GPI. As of 6:45 p.m. EST last night, theApril contract was off 0.5 cents to $2.365.

April may very well remain within its range of $2.295-$2.43until it expires on Friday, and if so, the contract would belargely immune to any new market information. However, May is adifferent story, and this Friday market the release of theCommodity & Futures Trading Commission (CFTC) update onCommitment of Traders. Two weeks ago, speculators were net shortalmost 4,600 contracts, so “it will be interesting to see wherethey turn out to be on Friday. If they are still net short, even inthe face of the recent rally, I think you could see May surgehigher when trading resumes next Monday,” he predicted.

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