November natural gas prices established another new contract low during the initial morning hours, but they have since bounced back into positive territory. A positive close this afternoon would break a 4-day losing streak in natural gas that has trimmed more than 4.0% from its value. Tropical storm activity is expected to stay away from key Gulf of Mexico production areas, with the remnants of Ophelia swirling east of the northern Leeward Islands and Tropical Storm Philippe offering little threat to land. Meanwhile, US domestic natural gas output in 2011 is expected to hit a record high of 65.79 bcf per day, above the 62.05 bcf per day achieved in 1973. The Commitments of Traders Futures and Options report as of September 20th showed non-commercial traders were net short 179,752 contracts, an increase of 8,851. Non-commercial and nonreportable traders combined held a net short position of 146,654 contracts, for an increase of 11,454.
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