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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