Daily GPI / NGI All News Access

Futures Ratchet Higher in Technical Trade

Futures Ratchet Higher in Technical Trade

Adding to Monday's gains the natural gas futures continued higher at Nymex yesterday as technical buying lifted the June contract in active trading. And with that 4.8-cent rally to $2.359, June was able to successfully fill in $2.31-33 daily chart gap and notch its highest daily close in more than a year.

Lack of tangible supply or demand factors forced even the most dyed-in- the-wool fundamental traders to admit that the market's recent advances can be blamed solely on technical dealings. "This is a purely technical move. Futures are moving higher and cash is trying to keep pace. There is no weather to speak of in Texas or the Southeast," offered a Houston marketer. He added that cash prices moved higher despite the displaced demand associated with a number of nuclear power plants coming back off planned maintenance.

However, it will be hard to ignore fundamental factors this afternoon when the American Gas Association releases its weekly storage report, which market observers believe will feature a 20-40 Bcf injection. A figure of that magnitude will pale in comparison with last year's 78 Bcf tally, further compressing the 175 Bcf surplus to last year.

©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.

ISSN © 2577-9877 | ISSN © 1532-1231
Comments powered by Disqus