NYMEX Henry Hub Report
Date: May 16, 2012
Nat Gas is up just over a nickel at 2.551 as of 8:59am ET. Housing starts are boosting the SPUs and there should be carry over into natty. Industrial Production and Capacity Utilization are about to come out at 9:15 with a consensus for the former of an increase of 0.6%. This should effect the Natty market and is the best shot for the Bears today. We are out of all the rolls, and the 2nd/Prompt spread has been tightening with prompt leading the charge.
Over all this has been a bullish market as storage is getting built into price, and weather is encouraging for smaller injections than normal. 53 BCF is the current Bloomberg Median. The Euro is on the rebound, and while the correlation is thin, it is supportive of crude and the energy complex in general. ENI and the Mozambique 3 TCF discovery may shorten the backs if one is contemplating US LNG exports in 2016. We are solidly over 2.50 now, next stop 2.60, but probably not today. For today, still a Bull, but looking for a brief pullback.
Resistance
2.607 2.711 2.801 2.920
Support
2.531 2.464 2.385 2.236
Drew Wozniak
Vice President, Market Research and Development
ICAP Energy LLC
Drew.Wozniak@us.icapenergy.com
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