Daily GPI / NGI All News Access

Futures Shrug Off Storage Report Again

Futures Shrug Off Storage Report Again

For the second straight Thursday, natural gas traders ignored a seemingly bullish American Gas Association storage report by pressuring the market lower in light, long liquidation. The June contract was the hardest hit by the sell-off, slipping 6.4 cents to $2.295 in active trading.

Some traders were surprised by the market's inability to rally after the measly 34 Bcf storage injection, which dropped the oft-quoted year-on-year storage figure to 131 Bcf. However, a Gulf Coast marketer pointed to the other half of the equation-demand-which he feels is a bearish factor in the short term. "Temperatures have moderated considerably since last week. That coupled with the all the [nuclear units] that are coming back on line and you have a much different demand component in this market," he said.

The price drop comes at a time when the market is trying to assess the uncertainties surrounding supply and demand, both now and in the months to come, said Tom Saal of Miami-based Pioneer Futures. "In the meantime, this market may be trying to establish a trading range," he offered.

For the June contract, the Pegasus Econometric Group pegs that trading range between recent lows and highs at $2.205 and $2.405 respectively.

©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