As mentioned before, distillate supplies are more than ample, and should rise further into the fall heating season. We wouldn't be surprised to see a decline to 5000. Nothing appears set up for today's turning point. Sep natural gas remained on the defensive due to the outlook for normal to below normal temps across most of the US into early next week. We wouldn't be surprised to see a pullback to 2500 support and possibly the gap at 2280.
Nothing appears set up for today's turning point.
There's also the increasing likelihood that the Step 2 program will go back into effect later this year. However, we feel the up move is on borrowed time. For one thing, a record US crop is possible, and improved weather conditions are forecast for the Delta this week. For another, global stocks are more than ample. Finally, subsidies won't alter the bearish supply scenario since foreign exporters will lower prices to compete.