Overnight

Continuing to scratch new lows as it approaches expiry, the September natural gas futures contract in overnight Access trading and the regular session Tuesday carved out lows of $5.25 and $5.26, respectively, the lowest the contract has traded since Feb. 25, when it notched $5.22.

Spurred by losses notched in overnight Access trading, the natural gas futures market continued to free-fall Monday as fund traders re-acquired their short holdings just as quickly as they had exited them earlier this month.

Feeding off gains notched in the overnight Access trading session, the natural gas futures market was able to string together another positive trading session Tuesday as early short-covering led to new highs for the week. Steady selling was seen throughout the afternoon, but it was not enough to pressure the market below unchanged on the day and the October contract finished with a 1.7-cent advance at $4.511. At 77,470, estimated volume was strong considering the narrow 11-cent trading range.

Adding to strength experienced in the overnight access trading session, natural gas futures galloped higher Monday as short-covering made a indelible imprint on a market otherwise devoid of much trading liquidity. After gapping higher at the opening bell, the prompt June contract received a boost by supportive technical features as well as reports of nuclear unit problems. It closed at $5.689, up 43.4 cents for the session.

Gas futures continued to move down Thursday morning from an overnight Access high of $7.20 and shifted around in the low $6.90s before the EIA’s storage report of a 176 Bcf storage withdrawal provided even more selling pressure. April ended the session down 17.7 cents to $6.844, which makes four straight daily declines. Trading ranges remained very wide with a daily high for April on Thursday of $7.00 and a low of $6.690.

Following on the heels of price strength in the overnight Access trading session, natural gas futures extended to a new, one-week high Monday morning. However, as with the other rallies above the $5.30 mark in the last month, overhead selling entered the market and was enough to crush the advance. The February contract finished at $5.251, up 10.8 for the session, but well below its early morning Access high at $5.36.

After watching prices bubble higher during the overnight Access trading session, natural gas bulls were treated to a gap higher opening Tuesday morning, as concerns over storm curtailments lingered. However, once the follow-through buying had run its course and resistance in the $3.88-90 area had held, prices shuffled lower in the afternoon. The November contract finished at $3.862, up 12.2 cents on the day, but down 2.8 cents from its high for the session.

Shrugging off losses notched in the overnight Access trading session, natural gas futures checked higher throughout the day Thursday as traders reacted to forecasts calling for a changing weather pattern in the second half of November. At the closing bell, the December contract was 9 cents higher at $2.96.

Eroding gains achieved in the overnight Access trading session, natural gas futures trickled lower Tuesday as neither bull nor bear was willing or able to propel the May contract outside of its recent trading range. Closing at $5.115, the May contract finished 5.5 cents off its opening trade, but 1.2 cents above Monday’s settle.