futures

What a difference a day can make. Just 24 hours after natural gas prices erupted higher amid a frenzy of short-covering, the bears were back in control Wednesday as they pressured prices to fresh weekly lows. The June contract finished at $4.298, down 35.5 cents on the day but 2 cents above Friday’s close.

After failing for the third day in a row to sustain a move beneath $4.20, natural gas futures rallied yesterday as traders began to cover shorts initiated during the recent price erosion. At the closing bell, the June contract was 14.6 cents higher at $4.348.

Following a lackluster rally attempt last Thursday, bears in the natural gas pit reasserted themselves Friday, pressuring the spot month lower for the tenth time in the last eleven trading session. Buoyed by overnight short-covering, the June contract was fast out of the chute at the opening bell, as it broke above Thursday’s $4.55 high. However, the buying pressure dried up at about 10:00 A.M. (EST) leaving the market susceptible to a sell-off. At the closing bell, June was 3.7 cents lower at $4.490.

Natural gas futures spiraled lower into the close Wednesday afternoon, following the announcement that a whopping 102 Bcf was added to underground storage facilities last week. At the close, the prompt June contract was 15.8 cents lower at $4.483, more than 22% percent down from the $5.78 notched a little over a month ago.

Following a nine-week sideways consolidation period, natural gas prices finally broke lower Monday, as traders continued to price in the impact of increased production in a slowing economy. A gap lower open for the June contract set the tone early and the bears responded with a steady stream of selling throughout the session, delivering the prompt month to its lowest settle in five months. At the closing bell, June was 17.2 cents lower at $4.695.

After failing to punch through last Wednesday’s high, natural gas futures traded mostly sideways Monday, as neither bull nor bear could influence prices. At the closing bell, the May contract was 0.3 cents weaker at $5.125.

For the seventh Monday in a row, natural gas futures started the week on a strong note yesterday as traders were greeted back from the holiday weekend to inhospitable weather across the nation. Snow showers in the upper Midwest were giving traders one last taste of winter weather while a cold rain was falling across the Northeast. Meanwhile, rain, hail and strong thunderstorms were battering Houston Monday afternoon. Needless to say, it was not a good time to be a seller.

On the heels of bearish storage data released yesterday afternoon and ahead of the three-day weekend, gas futures tumbled lower for the second time in the last eight trading sessions Wednesday as speculative longs headed for the exits. The May contract was thehardest hit by the selling. It tumbled 17.4 cents to close at $5.385. Nearly as battered was the 12-month strip, which took back 15.2 cents of its recent advance toclose at $5.479.

For the sixth time in seven trading sessions, natural gas futures advanced higher yesterday amid technical bullishness, and as traders continued to grapple with the possibility that the year-on-year storage deficit—currently at 404 Bcf—will be difficult to trim this summer when gas is in high demand for electricity generation. The May contract led all months Tuesday, finishing 8.2 cents stronger at $5.559.