MTECHTIPS
Someone slipped Natural Gas a "5-hour Energy" drink, as that is about how long gas rallied on the day. The front of the curve racked up a 7% gain, advancing 17 cents, to $2.64/MMBtu. Readers have commented that with a few big funds exiting the market recently, volatility seems to be heightened. The rest-of-the-injection season rose 14 cents, to $2.75, while calendar 2013 added a nickel, to $3.48. Similar to the May rally, gas seems to be trying to price as high as it can without trimmingCoal displacement too much. We believe this rally, too, will be checked. The weather outlook does not justify the price gain today. The forecast shifted in a somewhat bullish direction, with even warmer weather expected in the east in the near term. The tropics are peppered with the seeds of storms, but nothing significant is predicted at this point. Cash markets joined in the rally, with almost all points higher, but with smaller gains. Henry Hub moved just a penny higher, to $2.45; New York prices (Transco-Z6) gained eight cents, to $2.62; prices at SoCalBorder rose 20 cents, to $2.75.
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