Inventory Data Fuels another Natural Gas Rally, Will $3 hold? (UNG)
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United States Natural Gas (UNG) is higher by 4.6 percent intraday on Thursday following a more bullish inventory report than expected. EIA data this morning showed that natural gas inventories increased by 24 bcf vs. 30 bcf estimated.
Forecasters are calling for milder weather in the coming weeks, which has created downward pressure in recent days. However, with storage builds below norms for 14 weeks running, bulls have a compelling enough reason to take another shot at recent highs above $3 per billion BTU.
In the past, futures have had a difficult time holding the $3 handle, as power companies swap back and forth between coal and natural gas, but a sustained move higher is not out of the question, say traders.
United States Natural Gas (UNG) is high by 6 percent in the past 5 sessions, with most of the gains coming today.
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Forecasters are calling for milder weather in the coming weeks, which has created downward pressure in recent days. However, with storage builds below norms for 14 weeks running, bulls have a compelling enough reason to take another shot at recent highs above $3 per billion BTU.
In the past, futures have had a difficult time holding the $3 handle, as power companies swap back and forth between coal and natural gas, but a sustained move higher is not out of the question, say traders.
United States Natural Gas (UNG) is high by 6 percent in the past 5 sessions, with most of the gains coming today.
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