RE:Where does gas goI've been saying this for a few weeks now , I see a real short trap being set for traders shorting nat gas on NYMEX . Buying has been just enough to keep the price within 15 cents of the $3 level which remains the pivot price for sustained moves either up or down . The Mar futures contract runs out Feb 24th which leaves only next Thursdays inventory report before the contract closes . With a big drawdown of 300bcf this coming Thursday I believe there will be a rush to close any short positions which should get NYMEX moving over $3 sustainably . We will all see whether I have been reading this right within a week . I am hearing more talk regarding supply as opposed to the old chorus of "bloated inventory" , as supply
/demand starts getting more attention , nat gas prices will see appreciation to a more profitable level .
retiredengexec wrote: Top I agree that we will see 500 to 550 bcf withdrawals in the next two weeks. Futures have increased quite a bit to 2.95 ish for Nymex. Absent any weather surprises this looks pretty good. About 40 cents up in the last month or so. What could kill this? A prolonged shoulder season or hot summer. Either way 1.2 bcfpd of gas looks pretty darn good.