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Natural Gas News: Storage Report Crushes Weather Rally in Natural Gas Futures
On the downside this week, traders will be eyeing previous bottoms at $2.405 and $2.340. On the upside, short-covering buyers will have to recover previous key bottoms at $2.526 and $2.688 before they can even get a shot at the minor top at $2.763.
With traders facing expiration on Tuesday I don’t expect to see a change in trend, but with natural gas, you really never know. Time to move into the June futures contract anyway.
Weather Gave Bulls an Opening, Supply Took It Back
The week started with cooler forecasts across parts of the Midwest and East. That was enough to get traders interested. Heating demand expectations ticked up, production looked slightly lower early in the week, and prices moved higher for a few sessions. It felt like the bulls had something to work with.
They didn’t. Most of the country stayed in mild spring conditions, which is the worst possible setup for natural gas demand. Heating is done. Cooling hasn’t started. Total consumption stayed soft even with the cooler pockets, and that weather story ran out of road fast.