![]() ![]() Deutsche Bank then acknowledges that the Northeast and Mid-Atlantic are being "pummeled" by snowstorms and below-normal temperatures but also points to unusually cold weather in the UK and Europe and "reports that some LNG cargoes were diverted to Europe from Cove Point." Deutsche Bank than cites short positions that at one time outnumbered long positions by about 5-to-1. Deutsche Bank first cites last week's storage withdrawal that was about 23 Bcf ahead of analyst expectations and about 30 Bcf above the five-year average, which appears to have been the jumping off point for the rally. According to Deutsche Bank's oil and gas research unit, the recent natural gas price run is due to several factors including last week's above-expectations storage withdrawal, cold weather on both sides of the Atlantic, and a seriously short position for traders. In after-hours trading the January contract was continuing to see a minor sell off with the contract down as much as a dime by early afternoon. The rest of the strip rose in descending fashion out from March. In fact, March, with a 13.3¢ gain to $6.391, overshadowed the lackluster finishes for January and February. ![]() The rest of the strip spent the day in similar fashion but ended trading with a gain. Lesser attempts to rally fizzled with the January contract finally ending the exhausting day at $6.711/MMBtu, down 1.1¢. By 11:30 a.m., the front month contract was a couple cents down on the day to complete the day's range from a high of $7.55 to a low of $6.66. But within another hour, the contract had retreated again to a saner advance of only 23¢ - a gain it couldn't sustain. In the first minutes of trading, the January front month natural gas contract jumped 24¢ - then moved up by 78¢ by 10 a.m. In early trading, Nymex natural gas futures quickly recouped yesterday's losses and made a strong attempt to continue the price rally. ![]()
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