July natural gas prices climbed to their highest level since May 29th during the initial morning hours, helped by carry over strength from yesterday's session. The market rallied by more than 14% Thursday, fueled in part by EIA storage data that showed a slightly smaller than expected injection of 67 bcf. This brought total storage to 2,944 bcf or 29.2% above the 5 year average. Over the last four weeks natural gas storage has increased 277 bcf. It seems that the upside action in July natural gas might have also come from a level of short covering activity, evidenced by a dramatic increase in trading volume.
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