September natural gas opened higher Tuesday evening but encountered a level of resistance at yesterday's high. It appears that the market has garnered a level of support from a slight warming trend across the southern US. Additional upside came in the form of bargain-hunting after prices fell below under $4.00 and from oversold technical conditions. The National Hurricane Center has begun tracking a tropical system in the southern Atlantic, which they estimate has a 20% chance of developing into a Tropical Cyclone in coming days. The EIA released their latest 2011 natural gas production figures yesterday, which were up 6.0% from year ago levels and slightly higher than the previous monthly estimate. They also noted a modest increase in consumption but not enough to compensate for the increase in production.
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