Nat Gas prices in short covering rally on bullish inventory report
As I have been discussing in the newsletter this week today's EIA Nat Gas inventory report was biased to the bullish side (see below for a more detailed discussion). The futures market has bounced a bit higher since the report was issued.. mostly on short covering. I do not think there are many new longs getting into the market at this point in time as the latest NOAA six to ten day and eight to fourteen day forecasts are projecting above normal temperatures across the eastern half of the US into the third week of January. Thus although today's inventory report outperformed both last year and the five year average the upcoming reports reflective of the forecasted temperature period should be more in line with the withdrawal level from last year.
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