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Gas traders start giving it away
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Re: Gas traders start giving it away
In the US, storage tied a record last week and there is still at least a month before nat gas starts to get withdrawn from storage. The average withdrawal over the next 4 weeks averages around 260 bcf. In spite of that, the NYMEX price has rose about 15% in the last week. I believe this is due to short covering and the first real cold weather of the year. Cash gas at Henry Hub today was around $5.16 while the November contract is about $6.50.
I believe that after this cold front moves through and the country warms next week the market will again move lower to test and ultimately break through the recent lows. The recent move looks like a technical rally, but unless there is an extremely cold winter prices will make new lows.
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