Natural Gas yesterday settled up by 10.17% at 130 as prospects of warmer weather ahead helped stoke the flames under this slumping energy segment.
Natural Gas prices have exploded to the upside perhaps in reaction to the bankruptcy filing of Chesapeake Energy, the largest fracking company in the United States.
MCX Natural Gas support key level @ 118 and below same could see a test of 109 levels, and resistance is now likely to be seen @ 138, a move above could see prices testing 143.
Upper high pressure will stretch from Texas to the Great Lakes and across the southern US with very warm to hot highs of upper 80s to 100s, hottest Southwest deserts.
Cooler exceptions will occur over the Northwest and New England as weather systems stall with showers and highs of 60s and 70s for locally light demand.
The Fourth of July weekend will remain very warm to hot over most of the US with highs of upper-80s to 100s besides the far northwest and northeast US. Heavy showers are likely over the Southeast but very warm & humid.
EIA weekly nat gas storage report printed a build of +120 Bcf, much larger than market expectations of +105-110 Bcf and much larger than the 5-year average of +73 Bcf.
This increased surpluses to +466 Bcf and pushed supplies to over 3 Tcf. Next week’s build will be much smaller than this week due to hotter conditions across many US regions.