Algorithmic

August natural gas declined slightly Wednesday as algorithmic traders showed little interest in purchases at current prices and the market awaits the release of government inventory figures. August had fallen 3.3 cents to $4.500 and September had skidded 4.2 cents to $4.469. August crude oil gained 64 cents to $98.14/bbl.

August natural gas futures advanced Thursday following the release of government inventory figures and on the basis of buy orders prompted by systematic and algorithmic traders. The Energy Information Administration (EIA) reported an increase in natural gas inventories of 78 Bcf, slightly lower than market estimates, and the market immediately jumped off session lows. At the close August had added 5.9 cents to $4.374 and September was up 5.9 cents as well to $4.393. August crude oil rose 65 cents to $95.42/bbl.

July natural gas took another small step higher Wednesday as traders adjust to strong interest by algorithmic and fund players and expectations of much-below-normal inventory increases in a government inventory report Thursday.

July natural gas futures rose sharply on a combination of technical buying ahead of the long weekend and algorithmic traders utilizing buy stop orders to limit losses. At the close July had advanced 15.8 cents to $4.518 and August had risen 15.2 cents to $4.557.