A 9-day rally in the natural gas market which moved the spot price higher by nearly 25% has been followed by a 3 day pull back which has erased 8% of the recent gains.
Weather forecasts remain cold although not as cold as initially predicted which has been most of the reason for this week's selling.
Forecasts do remain cold which should keep sellers from aggressively pushing spot price too far under the 4.000 level.
Today's storage number is expected to show an injection, possibly the final of a record high injection season for 2014.
Analysts' per-report estimates are for an injection of between 38-71 Bcf, with an average estimate of 48 Bcf.
Today's session will be a key test of underlying market strength following recent gains. The market may have gotten a bit ahead of itself on the run up over the past two weeks. A sell off back toward into the 3.950-4.000 level basis the December 14 contract would not be surprising.
But ensuing weakness should be short-lived as funds and end-users are expected to be buying on price dips.
Funds missed the first rally higher but probably won't be so timid the second time around.
Today's storage number at 9:30 am central.
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