After shrugging off the undeniably bearish news that 28 Bcf was pulled from storage last week, the natural gas futures market turned dramatically higher Thursday afternoon to notch new 6-week highs. Commercial buyers — sparked by the growing concern that prices in the low- to mid- $5.00s may not be around for much longer — were seen as the featured buyers early in the afternoon. However, when it became apparent that prices were on a tear, the speculators jumped into the buying fray, covering shorts on the way up.
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Record-Breaking Storage Refill Fails to Awaken Bears
For the second week in a row, natural gas futures shrugged off an undeniably bearish storage report. After dipping to $6.25 in the moments following the report of a record-setting 114 Bcf weekly storage injection, the July contract rebounded Thursday afternoon amid waves of short covering and speculative buying. The contract notched its highest close ever at $6.521, up 14.6 cents for the session and within striking distance of Wednesday’s $6.61 top.
June 6, 2003
Traders Tread Lightly Ahead of Weekend; Futures Dip 2.3 Cents
Despite undeniably bearish medium-range weather forecasts, natural gas futures eased only slightly Friday as traders were hesitant to short the market for fear they would receive a bullish surprise Monday morning.
December 9, 2002
Bears Look Past Storage Data, Oil Spike to Send Gas Futures Lower
In a typical display of its ability to shrug off undeniably bullish information, natural gas futures turned lower Wednesday afternoon following the announcement that a whopping 156 Bcf was pulled from underground storage facilities last week. After surpassing its Jan. 17 high of $2.38 to reach a new 5-week high at $2.41, the March contract plummeted 16.5 cents in 25 minutes to finish at $2.245, down 6 cents for the session.
February 14, 2002
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