September natural gas traded higher during the early morning hours, helped in part by positive reversal action Thursday. Yesterday's EIA storage report showed a smaller than expected injection of 25 bcf, and that helped prices reverse early losses. Total storage stands at 2,783 bcf or 2.8% below the 5 year average. Over the last four weeks natural gas storage has increased 172 bcf. Some traders suggested that increasing storm activity in the tropics could be offering a level of support. While these storms have less than a 40% chance of turning to a Tropical Storm this weekend, they do highlight the threat of supply disruptions during the peak hurricane season.
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