Thursday, June 14, 2012

Natural Gas Futures: +16% Today

In a positive reaction to today's weekly U.S. natural gas storage report, NYMEX Henry Hub Futures ended the day up 15.7%, or 34 cents, to $2.53 from yesterday.  Unfortunately, spot prices were only up a penny to $2.19.  News reports indicate the gain results from a "beat" of the analyst estimate of storage (storage was up 67 Bcf compared to analyst estimates of 71 Bcf) and the prospect that production reductions will allow gas storage to finish the injection season below the maximum storage level.

Bottom line - at least for today - is that the market is gaining more faith in natural gas.  But I'm not too worked up about this because there is a long way to go until November.  All it tells me is that traders are absolutely starved for good news.

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