“We see short-term support all the way up toward the $3.25 level” as the market reacts to “sizably more GWDDs,” Bespoke said. “Any bullishness is limited by expectations that these cold shots are focused just over the next couple of weeks and should fade into the end of October. Also, production is back to record highs and we look for balances to further loosen through the coming week with another large injection.”
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Rising production out of the shale industry may cap natural gas prices. Genscape Inc. said its daily pipeline flow estimate revealed that the lower 48 states’ production setting a new record for the weekend.
“Growth was surging prior to these, though, as Northeast producers have been taking advantage of all the new capacity from the last year to begin working through their inventory of drilled but uncompleted wells,” Genscape senior natural gas analyst Rick Margolin said.
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