Gas Petrospective – June 9, 2011
Natural gas prices were up 1.6 cents per million Btu yesterday, in a quiet pre-report session. Temperatures were in the high eighties and low nineties in the greater New York Metropolitan area, and normal for this time of year is 75° to 80°. Readings are forecast to return to that zone next week, but today is expected to feel like a bath in a thick and viscous Mulligatawny stew.
Prices had tried to sell off earlier in yesterday’s session, but buying and persistent short-covering pushed quotes back into positive territory before and then into the close. At one point, the expiring July contract had been as much as 6 cents down on the day. Before it was said and done, prices printed a new ten-month high and settled at a new high close for the last three quarters plus.
Prices were able to relieve some overbought pressures with the intraday selloff, but other pressures remain intact. July found some support at its median, green Bollinger Band yesterday, and it finished just below the upper blue band. Hot temperatures have combined with large short interest to keep this market hopping higher, long after it normally would have given up its pursuit of the upside.
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