US Natgas Futures Recover Footing

摘要

July US natural gas futures rose by 55.1￠ to ff8.696/MMBtu on Wednesday, falling just 3.1￠ shy of a full recovery from Tuesday's plunge. The catalyst for the rebound appears to be expectations for another unseasonably low storage build on Thursday.? However, the July gas contract is not yet out of the woods, as storage builds in the weeks to come are expected to close the gap with the ove-year average. Market reaction to Thursday’s bullish storage data could be counterintuitive. It is common for even a bullish injection to undermine a rally if it had already been priced into the market. Focus now shifts to factors that are loosening both sides of the supply/demand balance.