Natural gas prices traded on both sides of unchanged today but closed slightly higher on the day.
Early strength today was supposedly based on above-normal weather forecasts but above-normal temperatures unless extreme during September mean very little in terms of cooling demand for natural gas.
Today's 6-10 and 8-14 day NWS forecasts don't suggest an early start to winter which is really what is needed to drive the market higher.
This week's EIA storage report is expected another 90+ Bcf build which would for a 21st week in a row narrow the deficit of gas currently in storage relative to the five year average. This deficit which was 54.7% last March is down to 13.3% as of last week.
If storage injections over the upcoming 7 weeks remain high as they have during most of 2014, the natural gas market could see one final "washout" break to new price lows.
But once the market does bottom, a seasonal rally back higher is expected.
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