NY Natural Gas Review: May Gains as Large AGA Storage Draw Seen
Apr. 3-MAR--
By Charles H. Featherstone
New York, April 3 (BridgeNews) - NYMEX May Henry Hub natural gas
futures closed slightly higher Tuesday amid expectations Wednesday's
American Gas Association storage report will show a larger-than-normal
storage draw due to cold weather throughout the eastern U.S. last week.
May settled up 1.2 cents at $5.115 per MMBtu.
* * *
One broker described Tuesday trading as "one of the deadest days I
have seen," with many participants sitting on the sidelines and waiting to
see what Wednesday's AGA numbers will look like.
Since last week's AGA storage reports, market observers have been
concerned that this week's report would be large because of heavy heating
demand across much of the eastern United States last week. Those
expectations may be keeping natural gas futures prices up, according to
one analyst.
High temperatures across much of Texas--expected to cover much of the
South by the end of the week--could mean greater demand for cooling,
prompting higher gas use for electricity. One broker also noted that cold
weather in the Northeast also mean continuing natural gas withdrawal for
heating much of the region.
BridgeNews Global Weather Service is forecasting temperatures in the
high 80s and possibly low 90s for much of the South by the end of this
week. Hot temperatures are expected Tuesday mainly in Texas, southern New
Mexico, Louisiana and Southern Florida.
In its latest six- to 10-day forecast beginning April 8, BridgeNews
Global Weather Service is calling for higher-than-normal temperatures for
much of the eastern U.S., near-normal temperatures in upper New England,
and below-normal temperatures throughout the West.
April Henry Hub natural gas for next-day delivery traded in a range of
$5.22-$5.27 per MMBtu Tuesday, compared with Monday's trading range of
$4.99-$5.12.
OUTLOOK
Analysts saw support levels for May beginning at $4.87 and against at
$5.00, with resistance at $5.25.
UPCOMING
--American Gas Association storage numbers 1400 ET Wednesday April 4
--NYMEX May contract expires April 26, Jun expires May 29.
IN NYMEX TRADING TODAY:
CONTRACT MONTH TICKER SETTLEMENT CHANGE ESTIMATED VOLUME
(/MMBtu) Futures Options
May NGK1 $5.115 1.2c N/A N/A
Jun NGM1 $5.160 1.7c
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