There were no expiration day heroics for bulls Wednesday. Despite the bullish combination of extremely oversold conditions and modestly constructive storage data, natural gas futures tumbled again as traders used the September contract as a battering ram to reach a new 19-month low. Including Wednesday’s 12-cent decline and $2.295 close, the September contract suffered losses in each of its last 10 trading sessions, trimming a whopping $1.17 or 34% from its Aug. 15 value.
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No Expiration Day Heroics for Beleaguered Bulls
Natural gas futures at the New York Mercantile Exchange haveconsistently featured choppy trading, high daily volatility, andprice erosion for the last several months. And expiration dayTuesday was no different as traders tested both sides of a largetrading range before depositing the January contract 2.3 centslower to its final resting place at $1.765. And in doing so, theJanuary contract tumbled over a half dollar during its reign as theprompt month.
December 30, 1998
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