Nymex Rally Cut Short Despite Spiraling Production

摘要

The June Nymex gas futures contract tried to break out early last week,but robust storage inventories and relatively flat demand largely offset a dramatic drop in US production volumes.The prompt month surged 18.4c,or 11.4%,on Monday and Tuesday before giving back 12c in the next two sessions.It climbed back a 2.1C Friday to end the week at $1,731 per million Btu,a 5.2% gain for the week.Data on May 19 showing domestic gas production hit its lowest level in more than a year-and is expected to keep declining this summer-sparked an early-week surge by the front-month contract as traders eyed a tightening supply/demand balance.