Rebounding from a post-AGA sell off, natural gas futures clawed higher late yesterday as traders failed to demote prices beneath support at $4.05 for the second day in a row. At the closing bell, June futures were a penny lower for the session at $4.113. Estimated volume was relatively light considering the price action as only 66,491 contracts changed hands.

According to the American Gas Association 118 Bcf was added to underground storage facilities last week, bringing stocks to 36% full at 1,182 Bcf. At first glance, the injection figure was bearish because it was more than the 90-110 Bcf range of market expectations and the market wasted little time reacting accordingly. In just 25 minutes after the report was released, the prompt contract sunk nearly a dime to $4.05. However, on closer inspection the report had a silver lining for bulls. In a footnote to yesterday’s report, the AGA announced that last week’s report has been revised downward from a 119 Bcf refill to a 106 Bcf injection. According to an AGA statistician, the revision was necessary to account for new data from one company in the consuming region east.

Several traders polled by NGI were quick to point to the footnote as reason for the late rally. After moving higher in the final 45 minutes of yesterday’s regular open-outcry session, the June contract had tacked on another 2.7 cents to trade at $4.14 by 7:50 P.M. (EST) in the overnight Access session.

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