Natural Gas Commentary

 

Natural Gas traded higher settling $3.418 up $0.06 1.8%. The curve was weaker, 13/16 down $0.08 (16-20 up btwn $0.08-$0.13). Hub cash was firmer, ~$0.08 back this morning, Z-6 up $0.15 to $3.55. The 12z was warmer Midwest and South and much cooler West Coast/Plains during the 6-10 day. The 11-15 day was significantly cooler West and South- Central U.S. Thursday we anticipate a withdrawal from storage ~75 Bcf, bearish vs last year’s 100 Bcf withdrawal and 5- yr average 143 Bcf withdrawal. This week will further widen to the YoY and 5-yr surplus to ~100 Bcf and 300 Bcf.

 

Vol was offered in F13 but firmer overall: (F13 340 14.00 15.00 34.05% -2.13% G13 345 35.50 36.50 38.59% 0.43% H13

345 45.00 46.50 38.01% 0.34% J13 350 51.50 53.00 36.18% 0.53% K13 355 57.00 58.50 34.39% 0.09% M13 360 63.00

64.50 33.49% 0.30% N13 365 68.00 69.50 32.92% 0.01% Q13 365 73.00 74.50 32.78% 0.63% U13 365 78.50 80.00

32.96% 0.14% V13 370 83.00 85.00 32.67% 0.20% X13 380 85.50 87.50 31.02% 0.18% Z13 400 88.50 90.50 29.23%

0.50%).

Technically we are neutral, we look for $3.25 (100dma) to hold.  Resistance is found at $3.47, $3.58, $3.70. On the downside we see support at $3.36, $3.25.

 

 

Editor’s Note: Natural Gas Commentary readers who are equity investors/traders only can gain access to the Natural Gas space through the following exchange traded funds (ETFs).

Natural Gas

United States Natural Gas Fund (UNG, quote)

United States 12 Month Natural Gas Fund (UNL, quote)

First Trust ISE-Revere Natural Gas Index Fund (FCG, quote)

 

About OTC Global Holdings

Formed in 2007, OTC Global Holdings is headquartered in Houston and New York, with additional offices in Chicago, Jersey City, London and Louisville. It is a leading independent interdealer broker in over the counter commodities and the largest liquidity provider to CME ClearPort and ICE Clear U.S. Through its subsidiaries the company holds a dominant market share in the U.S. and Canadian natural gas markets, the U.S. power markets, crude oil and crude oil options, crude oil products and crude oil product options, agricultural and soft commodities, as well as structured weather and emission derivatives. The company serves more than 250 institutional clients, including 45 members of the Fortune 500, and transacts at over 150 different commodity delivery points. To learn more about the company, please visit www.otcgh.com or go to http://bit.ly/OTCYouTube.

 

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