Natural Gas - NYMEX - Buy ABCD Pattern
Fundamentally, there's not much out there to cause a steep jump in prices. I think this is mostly a technical move - the market was simply under priced.
Warmer weather forecasts for next week could increase demand or gas by forcing homeowners and businesses to use more air conditioning, but the South was expected to remain on the cool side, partly blunting the impact. Strong gains in gas inventories over the last few weeks have raised concerns that storage could challenge last year's record highs by November.
Weekly inventory builds reported by the Energy Information Administration have come in above the five-year average for two straight weeks, and more above average injections are expected in coming weeks.Total domestic gas inventories climbed to 2.941 trillion cubic feet in last week's report, slightly above the five-year average for the first time since late March.
Expectations for rising storm activity during the peak of the Atlantic hurricane season in late August and September could keep sellers cautious and help support gas prices.
Warmer weather forecasts for next week could increase demand or gas by forcing homeowners and businesses to use more air conditioning, but the South was expected to remain on the cool side, partly blunting the impact. Strong gains in gas inventories over the last few weeks have raised concerns that storage could challenge last year's record highs by November.
Weekly inventory builds reported by the Energy Information Administration have come in above the five-year average for two straight weeks, and more above average injections are expected in coming weeks.Total domestic gas inventories climbed to 2.941 trillion cubic feet in last week's report, slightly above the five-year average for the first time since late March.
Expectations for rising storm activity during the peak of the Atlantic hurricane season in late August and September could keep sellers cautious and help support gas prices.