First up, today's action via FinViz:
The bet would be that the gap gets filled before any concerted up-move but with the injection report tomorrow, who knows.
A 5.5 cent spike like today's can really wreck a short's day.
And from the Wall street Journal's Ahead of the Tape column:
Natural Gas Unlikely to Weather Its Glut
Even a hurricane can't provide a breath of fresh air for natural-gas prices.Previously:
Time was, a storm like Isaac would shut down gas supply around the Gulf of Mexico, causing prices to spike. They hit their highest ever, about $16 a million British thermal units, soon after hurricanes Katrina and Rita in 2005.
But the boom in onshore shale-gas production has diminished storms' disruptive power: Offshore wells deliver less than 6% of U.S. output today compared with about 16% then. Far from spiking, gas futures have dropped 18% this month to under $2.70.
Thursday's report from the Department of Energy on the level of gas inventory likely will confirm that it will take more than bad weather to clear the prevailing glut. Analysts estimate about 60 billion cubic feet of gas was injected into storage in the week ended Aug. 24. That would be on par with the five-year average.
Price bulls need injections to be much lower....MORE
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