September natural gas established a new low for the decline overnight, but it has since reversed to the upside. Some traders suggested that the natural gas market might have caught a bid from the low pressure system heading for the northern Windward Islands. The latest from the National Hurricane Center indicated a 90% chance of the storm developing into a tropical cyclone in coming days. It is also possible that Friday's rig count data from Baker Hughes dropped by 12 last week, and that could be contributing to this morning's early turnaround. The Commitments of Traders Futures and Options report as of July 26th showed non-commercial traders were net short 158,176 contracts, an increase of 344 on the week. Non-commercial and nonreportable traders combined held a net short position of 116,393 contracts, an increase of 1,306 in the week. It is possible that that number is understated following the 4.3% decline in price after the report window closed.
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