September NYMEX gas tumbles after bumping up against $5/MMBtu

Chemical News: September NYMEX gas tumbles after bumping up against $5/MMBtu

https://www.chemnet.com Aug 04,2010
The September NYMEX natural gas futures contract tumbled Monday to settle
at $4.701/MMBtu after a solid week of gains last week.

Enerjay broker Jay Levine said the market had a good run but hit
resistance at $5/MMBtu. "That's as good a reason as any," he said. "Easy come,
easy go."

PFGBest analyst Phil Flynn said he thinks that traders were shorting gas
and buying oil since oil prices rose $2.47/barrel while gas tumbled.

Flynn said when market participants buy oil, they like to short natural
gas because it does not have direct exposure to the dollar as oil does.

Additionally, Flynn said that traders may also be removing some of the
tropical storm premium since it too early to forecast whether a tropical
depression that has formed in the central Atlantic Ocean will threaten oil and
gas concerns in the Gulf of Mexico.

The contract opened at $4.988/MMBtu and traded between a high of
$5.007/MMBtu and a low of $4.681/MMBtu.

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