For a commodity with such a stable supply outlook, US natural gas is one volatile contract. In January, it threatened to dip under $3 per million Btu before regaining its footing and shooting up 36% by mid-April to a nine-month high in the $4.40s a year after it was plumbing lows under $2. However, just as the current market can't seem to sustain a rally above $4, it also won't be seeing a $2 handle anytime soon. Prices appear to have found a long-term floor around $3.50 after a price tumble precipitated by several weeks of solid storage injections, according to Sabine Schels, a commodity strategist for Bank of America Merrill Lynch (BoA) Global Commodity Research.
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