October Gas Stages Late Rally in Front of Long Holiday Weekend

摘要

After eroding into the upper $3.60s last week, an unexpectedly large surge of short-covering emerged ahead of the long holiday weekend, sending October gas futures prices rallying close to the $4 mark. However, the brief ascent might only be short-lived if the market returns from the Labor Day holiday absent hurricane threats to the Gulf of Mexico. "The gas market has been oversold for the last several days without much follow-through to the downside, so we got a surprise rally before the long weekend," said a gas futures trader in New York. "But if we see more of the same lacking tropical activity, it might be time to get out your hard hats in the next few days."