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Natural Gas Continues To Show Strength, But For How Long?

The recent hot streak throughout a large portion of the US has seen natural gas continue its rally that started in the early part of August.

Yesterday the EIA released its storage number which showed an injection of 67 BCF which was slightly above expectations.

As we can see from the chart, futures sold off sharply, only to rebound over the remainder of the session.

The Nov13/Jan14 spread finished higher and shows no signs of reversing just yet.

The weather still seems to be the dominate factor at the moment, with the National Hurricane Center saying two westward-moving storm systems in the Atlantic Ocean could become tropical cyclones over the next two days. That's on top of the above-normal temperatures.

We will continue to watch this one for signs of a changing weather pattern, with the shoulder season fast approaching.

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