FX.co ★ Gas Review for September 17, 2010

Natural gas futures closed slightly up amid the profit fixation after a 5-day ascend.
According to the results of the NYMEX the October futures for gas decreased by 3.8 or by 0.9% to $4.024 per btu. October futures ended above the level of 4 USD on Thursday for the first time since August 24, which lead to partial closing of the long positions with the target of the profit fixation.

The market states that high natural-gas reserves are also exerting the pressure on the prices. The EIA reports that the reserves of the natural gas last week reached 3.267 trillion cu ft, which is by 6.2% more than the average 5-year value. The natural gas extraction remains high even in the conditions of the market congestion, which increases the fears concerning that the gas inventories will be at the record highs for an extended period of time.
Nevertheless, the futures upturned from an 11-month peak hit in August. The analysts state, that the reverse was caused by the expectations of the demand growth in the winter time. Usually, the gas futures reach their minimum in August – September.
The tropical storm had no impact on the energetic infrastructure of the USA in the Gulf of Mexico. The hurricane Karl came upon the Mexican coastline on Friday and continued its advance westwards, though it did not influence the US natural gas extraction. It is expected that the hurricanes Igor and Julia will also have no effect on the gas production and will move to the north of the country.