Thursday, June 14, 2012

Natural Gas Futures Soar, Spot Much Quieter

Natural gas for July delivery settled 31 cents, or 14.2%, higher at $2.495 and is trading higher still in electronic afterhours action, 2.516 last I saw.
From Reuters:
* Mild near-term weather in consuming regions
    * Traders view light inventory build as bullish
    * Gas futures jump more than 14 percent after EIAs
    * Coming Up: Baker Hughes gas drilling rig data Friday

    By Eileen Houlihan 
    NEW YORK, June 14 (Reuters) - U.S. spot natural gas prices
were mostly flat to slightly higher on Thursday, with fairly
mild near-term weather expected to only marginally boost air
conditioning demand.
But soaring gas futures, rallying after government storage
data showed a smaller-than-expected weekly build to inventories,
were seen keeping momentum to the upside, traders said. 
Gas for Friday delivery at the nation's benchmark supply
point Henry Hub NG-W-HH in Louisiana rose 2 cents on average
to $2.20 per million British thermal units, after rising 1 cent
on Wednesday for gas delivered on Thursday....

The move in the futures will set up a lovely trade to the downside tomorrow or Monday.