Natural Gas Market Update for Gas Day March 9

The market was able to hold above yesterday’s low, but, unable to hold on to any of the gains from this morning. The lack of any bullish drivers triggers sellers whenever the market attempts to rally. April rallied up to the high for the day at $4.603 on the pit opening, but quickly rolled over, eventually trading down to the low of $4.476 just before the pit close at $4.516, losing 1.1 cents on the day. Oil settled at $81.49, down $0.38.


Thursday’s storage report is expected to be another 3-digit draw near the 110 level. This draw has most likely been discounted and prices are looking forward to about 2 weeks of above normal temps across most of the northern states. As a result, the market is pricing in some not-so-hefty draws later in the month and the potential for a stronger pace of production.


Technically, the picture remains negative, with sellers still interested in pushing prices lower – next stop $4.392, which is the 200 day moving average on the daily continuation chart.