The natural gas market has started out with modest gains this morning but is clearly lagging behind the strength shown in other energy markets, as November Natural gas at yesterday's lows was down by nearly 27 cents from the early September highs. Some traders feel that an improvement in overall market sentiment has helped the market trade back into positive territory this morning.
Other traders feel that natural gas prices may be weighed down by a recent long term US weather service prediction that temperatures might be poised to run at above normal levels in the US through the end of December, as the prospect for above normal heating demand for natural gas during the early winter period doesn't look good. The weekly natural gas storage report showed an injection of 67 bcf. Total storage stands at 3496 bcf or 8.6% above the 5 year average. Over the last four weeks natural gas storage has increased 188 bcf.
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