NYMEX Henry Hub Report
Date: March 10, 2010
Natty traded down about a nickel overnight as storage forecasts started to come out yesterday at around -115 BCF (ICAP’s will be out around noon after the Edison EEI release). This is an above the 5 year average forecast pull and is playing to the Bear’s paw. Bulls need some good economic news, or an exogenous event to provoke buying, in the meantime it looks like we are on the course of a slow grind down to $4.00 which will likely be the floor before hurricane reports and summer demand.
If you remember last year, there was a spate of early buying last year for the summer and fall hurricane hedging, but it is unlikely to happen this year with sellers having held back in hopes for higher prices. They didn’t get them, and may have to dump some on the market. We did hit an intra-month low this morning at 4.455. Bullish today with a possible lift at the open. If this doesn’t happen, consider it a confirmation of the sentiment. Don’t forget the GSCI roll 5-9th business days.
Resistance
4.540 4.655 4.789 4.869
Support
4.458 4.287 4.157 4.035
Drew Wozniak
Vice President, Market Research and Development
ICAP Energy LLC
Drew.Wozniak@us.icapenergy.com
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