MTECHTIPS;-Natural Gas Price Fundamental Weekly Forecast

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MTECHTIPS;-Natural Gas Price Fundamental Weekly Forecast

MTECHTIPS-Natural gas futures closed marginally higher last week despite a government report showing a bigger-than-expected weekly injection for the week-ending August 24. Traders said the move was likely fueled by storage build concerns ahead of the withdrawal season. Last week, October Natural Gas futures settled at $2.916, up $0.003 or +0.10%. Short-sellers started to cover on August 29 at $2.830, leading to a technical reversal to the upside. The buying continued to strengthen for the next two days, driving the market to $2.931 ahead of the long U.S. holiday week-end. The $0.101 jump was a pretty good indication that buyers are willing to defend the market against a substantial break ahead of the beginning of the winter heating season. The buying was likely fueled by the thought that the winter will begin with a significant deficit On Thursday, August 30, the U.S. Energy Information Administration (EIA) reported a 70 Bcf injection into storage inventories for the week-ending August 24, well above the market consensus of a 65 Bcf build. The 70 Bcf build was significantly larger than both last year’s 32 Bcf build for the week, and the five-year average injection of 59 Bcf

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