As I said last Thursday:
Natural Gas: EIA Reports Much Larger Than Expected Withdrawal, Futures Pop
The front futures traded as high as $3.81, $3.7670 last. We had been hearing a range as low as 80 to 120 Bcf, today's 145 Bcf pull blows those numbers out of the water.Here's today's action:
There are reports of producers laying on (and willing to lay on more) hedges at $4.00 or so which would make any move above that level very tough. On the other hand there has been a subtle but very important change in the supply picture over the last couple months, more on that later....
$4.00 is going to be tough to clear but there is a lot of consumption and a very slowly declining production picture.
