Natural gas prices remained strong for a second day today with the new front month December 14 contract up over .200 from yesterday's early morning low.
The recent strength in the market is interesting as it comes in the face of above-normal weather forecasts into the early weeks of November. These forecasts could obviously change but were bearish heading into today's session.
There is expected to a be slight increase in weather-related demand for natural gas this weekend as colder temperatures arrive in the upper U.S. But with storage injections record large and production reaching a new high in October, a prolonged period of below-normal temperatures will be needed to keep a sustained bid under the market.
Tomorrow's storage number is expected to be higher than normal with an average guesstimate for an 85 Bcf injection.
If the natural gas market can move higher over the next few days with bearish 6-10 and 8-14 day weather forecasts and an expectedly high storage injection, it would likely indicate the winter rally has begun.
No comments:
Post a Comment