(Gelber Corp) The NYMEX August contract price is trading upwards by 7 cents from its prior settle today (July 7), spiking to $1.90/MMBtu.
After nearly two weeks of positive momentum, prices will now begin to test mid-June resistance levels at ~$1.91/MMBtu before continuing towards the elusive $2 mark.
Overwhelmingly hot temperatures are predicted for the coming two weeks and are pressing prices higher as expected storage injections shrink.
As seen in the figure below, weather-attributed demand for the week is maintaining a distance of 5-6 Bcf/d above levels that would be expected with 30-year normal temperatures.
In addition to weather-related causes, a sudden production issue has also contributed to today’s price hike.
Source: Gelber Corp. Follow on twitter for regular updates & insights:
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