Erupt

Natural gas futures extended to new two-week highs Thursday on the surprising news that 9 Bcf was withdrawn from underground storage facilities last week. Bulls were quick to react to the data, and were responsible for propelling the market 17 cents higher in the five minutes following the 10:30 a.m. EDT release. The market continued to chop higher in the late morning and afternoon in an extremely active session that saw more than 90,000 contracts change hands. May finished at $5.419, up 22.4 cents for the day.

Like the snowfall piling up in New England, long positions filled the natural gas pit on Thursday as bulls received yet another double-dose of supportive news in the form of fresh weather and storage (162 Bcf withdrawal) reports. By 11 a.m EST the January contract had blasted through the $5.00 mark. With sellers backing away, the prompt contract was able to continue higher in the afternoon to top out at a new 19-month continuation chart high at $5.15. January finished at $5.089, up 38 cents for the session.

Natural gas futures vaulted higher Friday in heavy activity as traders covered shorts ahead of the first blast of cold weather expected across most of the country this week. After easily piercing psychological resistance at $4.00, the November contract paused near the $4.10 mark as traders caught their breath. However, it turned out to be only a quick break and prices rallied into the closing bell. November finished at $4.146, up 31.8 cents for the session and within striking distance of the recent top at $4.25.

Amid concerns over another day of rolling blackouts inCalifornia and buoyed by speculative short covering, natural gasfutures erupted higher Tuesday as traders factored in the chancethat the market has found at least a temporary bottom. The Aprilcontract finished 22.4 cents stronger at $5.287, but even moreimpressive was the buying interest in the out-months, which enabledthe 12-month strip to advance 23.6 cents to close at $5.421.