Futures Rally Sputters as Heat, Storms are Debated

Maintaining Monday’s momentum, August natural gas on Tuesday climbed to a high of $5.850 before retracing most of its steps in the afternoon. Despite the morning run-up, the prompt month settled at $5.633, up only 2.5 cents from Monday’s close.

July 12, 2006

Late Futures Buying Gives Bulls Five-Game Sweep Last Week

Retracing an early round of profit-taking, natural gas futuresclawed their way higher Friday as traders put the finishing toucheson a week in which prices not only notched a new life-of-contracthigh at $3.385, but also posted a fresh prompt contract 30-monthhigh. With Friday’s 0.2-cent increase, the June contract advancedeach day to gain 32.9 cents for the week. June finished at $3.354amid light estimated volume of just 54,639.

May 15, 2000

Futures Explode Higher Amid Storm Concerns

The market wasted little time retracing Thursday’s losses inactive trading on Friday by gapping higher on the open beforeexploding upward amid growing concerns of more supply disruptionsdue to storms in the Gulf and Atlantic. The October contract spikedas high as $2.35 on a wave of panicked buying early in theafternoon on Friday as traders were already facing supplyinterruptions associated with Tropical Depression 8. However, byearly afternoon traders were shifting their concern to the lessimminent, but potentially more severe Georges still located in theAtlantic. That allowed traders to take profits ahead of the weekendand October to slip lower. October finished up 12.2 cents to $2.26.

September 21, 1998

July Debuts By Retracing Some of June’s Losses

Thursdays have been a bearish trader’s best friend lately withthree of the last four featuring follow-through selling on theheels of some hefty storage refill estimates. However, yesterdaydid not follow true to form, as traders digested alarger-than-expected 92 Bcf American Gas Association storage refillestimate then managed to push July up 2.5 cents to settle at$2.071. In doing so, several traders remarked, July exhibitedJune-like characteristics marked by narrow trading ranges amidrelatively low volume. June looked to expire without much fussearlier in the week, then the bottom dropped out on the last day.It “looks as if that was more a case of people liquidatingpositions then anything,” a trader reasoned.

May 29, 1998