The natural gas market managed a bounce overnight despite pressure from outside market forces and despite a somewhat larger than expected injection in EIA storage from yesterday. Signs of above normal temps in the Midwest and/or northeast in weather maps probably offers little offset to big picture macro economic slowing fears and to a higher US Dollar. In fact, the market might not even be overly interested in low-pressure systems in the Atlantic which could threaten Gulf of Mexico operations. While the bull camp could argue that natural gas prices have very little growth premium in place at current levels, a further deterioration in sentiment and or the chance for a serious extension of the slowing view could continue to pressure natural gas prices. While some high cost of production wells might be threatened by this week's low in the October natural gas contract of $3.85, most traders doubt that prices have dropped to a level where supply will be lost. In the end, the best argument from the bull camp is the fact that prices reached a new contract low yesterday and that natural gas prices are now almost $2.00 below the June highs!
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