Wednesday, May 16, 2012

Natural Gas Front Futures Hit $2.59, Approaching Ceiling

From Dow Jones:
--Futures rise amid expectations for modest storage injection
--Inventories still at highest level for this time of year
--Rally could soon encounter ceiling
   By Dan Strumpf 
NEW YORK (Dow Jones)--Natural gas futures rose for the second straight session Wednesday on expectations that rising demand for the fuel will lead to a smaller-than-average addition to natural gas inventories.

Natural gas for June delivery recently rose 4 cents, or 1.6%, to $2.54 a million British thermal units on the New York Mercantile Exchange. Futures briefly touched $2.564, their highest level since March 1.

Early indications from traders and analysts suggest that market participants are bracing for yet another relatively modest addition to gas inventories in data due Thursday from the U.S. Energy Information Administration, amid rising demand from power generators opting for gas in lieu of more expensive coal....MORE