In natural gas futures, Thursday’s price spike erased nearly half of the decline in natural gas prices over the past six weeks, CNBC.com reported.
“Traders say a government report of smaller-than-expected increase in storage levels has led to renewed focus on power demand, causing market participants to cover short positions as well as enticing some buyers,” according to the article.
“This was an extremely big surprise,” said NYMEX floor trader John Woods. “Now you re-evaluate the trade.”
“The market was wrong-footed ahead of the EIA number and the new shorts that piled in have turned and covered,” added Eugene McGillan, a broker and trader with Tradition Energy, in the CNBC report. “Now we’re triggering fresh technical buying.”
U.S. Natural Gas Fund
