Save for later Print Download Share LinkedIn Twitter October gas futures inched 0.3¢ lower Friday to $2.765 per million Btu for a one-week gain of 10.8¢, supported by a weekly storage build that — despite its being sharply above consensus — demonstrated the market is tightening. During Friday's session, the contract traded as high as $2.86 before ending the day nearly unchanged. "We view the rally today as driven by short-covering in the wake of both a hurricane that was less bearish than expected, combined with the implications of [Thursday’s] storage report,” Gelber & Associates analysts said Friday. Independent commodities analyst Tim Evans said Thursday “the US natural gas market continued to draw support from forecasts for warmer-than-normal temperatures over the next two weeks.” He expects the storage surplus to keep declining over the coming weeks, confirming that “the market is becoming tighter on a seasonally adjusted basis, which generally reduces the downside risk and expands the upward potential for prices.”
