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Market Finds Trading Range Ahead of AGA Data

Market Finds Trading Range Ahead of AGA Data

Following the lead established late Monday, natural gas futures continued higher yesterday day as short-term traders bought into the rally. The August contract closed up 3.2 cents at $2.176, shortly after notching its $2.18 high trade for the day.

Opinions on the market's direction differ depending on your outlook. After last week's downward correction, short-term traders feel comfortable trading the market within its recent $2.10-20 range. On the other hand, longer-term outlooks call for prices to test and break below the $2.00 mark.

However, most short and long lead predictions agree weather and storage will continue to play an important role throughout the rest of the summer. And while the weather over much of the country remains somewhat benign this week, bulls are hanging their hats on the idea that the warm weather last week will have limited storage injections. The American Gas Association will release its weekly underground storage report this afternoon and many expect a small net refill of gas to offer the market a boost. Market estimates call for a 61-75 Bcf build, which if realized, would fall short of last year's 93 Bcf.

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