Inventories tighten
If you're in oil or industrial metals, this month has been a raging bull market. If you're in natural gas, it's been the same continued skid along the bottom.
Natural gas is down 1.3% today and has been stuck in a $2.60 to $2.80 range since early February. The seasonals are upbeat for the next few months but there has been minimal progress.
But there are signs of hope. The just-released storage data showed a 36 bcf drawdown compared to 26 bcf expected and there is a slight series of higher lows on the chart since February. The long-term support at $2.52 also continues to hold.
One thing is for sure: the slumber won't last. Volatility and huge price swings in natural gas are a certainty. It's only a matter of getting on the right side of the trade and holding on for dear life.
