MARKET EYE: Time to Turn Back Around

摘要

Despite record storage numbers and light shoulder- month demand, natural gas prices have climbed to mid-January levels at a time when the gas market typically sees peak winter pricing. However, prices appear to be channeling in a range of $4.30 to $5.30, and now that the highs have been met, the pendulum shows signs of swinging in the other direction. "Gas has been a mostly technically driven market since early September, which is obvious, because there has been so much disregard for the supply fundamentals in the last few weeks," said analyst George Speicher. "Nearly all the buying action we're currently seeing in commodities, particularly energy, is based on hedge fund 'money flow' that's seeking the highest returns."