Nat Gas got hammered this week, closing Friday at $9.08, down from the early July highs of $13.50. When a commodity loses 1/3 of its value in 3 weeks, it gets the market’s attention. Within the deflating inflation narrative we’re were beating on all week, the attached chart of the September contracts over volume traded is the one we’d like to highlight.
On the supply/demand front, the weekly storage report from the EIA came in at an increase of 84 billion cubic feet. This was higher than anticipated supply increase provided sellers with all the excuse they needed to keep the pressure on the September prices.
Within the construct of the longer term view, one interesting data point did cross the tape this week that was actually bullish for Nat Gas prices. On Tuesday, congressman Dan Boren and Democratic Caucus chairman Rahm Emanuel introduced legislation which includes incentives designed to get the number of NG fueled vehicles on the road to 10% by 2018.
KM
On the supply/demand front, the weekly storage report from the EIA came in at an increase of 84 billion cubic feet. This was higher than anticipated supply increase provided sellers with all the excuse they needed to keep the pressure on the September prices.
Within the construct of the longer term view, one interesting data point did cross the tape this week that was actually bullish for Nat Gas prices. On Tuesday, congressman Dan Boren and Democratic Caucus chairman Rahm Emanuel introduced legislation which includes incentives designed to get the number of NG fueled vehicles on the road to 10% by 2018.
KM
Chart by Andrew Barber, Director (Research Edge)
