A lot of funds are short natural gas so they amplified the downside move. Then, the bounce was on some short covering -- classic speculative volatility. |
Gas is still taking a lot of direction from the crude market. |
Heating oil customers have the worst of the situation. |
Natural gas prices will be bad as well, we shouldn't expect prices to go back down significantly. |
Prices are being pushed lower ahead of Thursday's storage report. |
Prices could remain at or above $38 for the next one to two years. |
That opened the market to smaller lot energy traders and even grain traders. |
The biggest story of the year is clearly the record-breaking hurricane season. |
The chance of it turning north to Louisiana is getting slimmer. |
The commercial sector is starting to realize that weather can't be an excuse for financial losses anymore. |
The elephant in the room is storage right now. Despite the expected return of colder temperatures, traders see the record high storage. |
The six- to 10-day forecasts are colder than average, and we're seeing more cold air behind it. It's going to be very bullish for gas, and we may see a really strong rally. |
There will be some volatility to the market, but barring any other major disruptions, I think we'll continue to head lower in prices. |
There's been tremendous growth in the weather market, driven by funds that are participating in cross-commodity activity. |
Traders are essentially writing off this winter season and are now focusing on the summer, which will need the additional storage to offset an active hurricane season. |