Save for later Print Download Share LinkedIn Twitter After trading as high as $3.018 per million Btu intraday Wednesday, September gas futures retreated, ending up 18.2¢ on the day at $2.959 per million Btu. The contract has moved 48.2¢, or 19.5% higher in the last five sessions. Today also marks the first time the contract has traded above $3 since Mar. 17. “Market participants caught short have been a large factor in fueling the rally, as their positions continue to be stopped out, causing a steady flow of indiscriminate buying,” Gelber & Associates analysts said. “Given the abnormal price action forcing market entities to reposition rapidly these past three trading days, storage has the potential to add to the already-notable volatility if significantly different from broad market expectations.” Looking ahead, weather driven demand has the potential to add fuel to the rally. “Natural gas is poised to test upper resistance and could see a major breakout, especially if the hot temperatures that are being predicted come to fruition,” Price Futures analyst Phil Flynn said.
