Natural Gas Prices
While the October natural gas contract managed to reject a significant washout yesterday, prices did post a 13 day low. We suspect that prices have derived some support from news that an offshore pipeline suffered damage from the hurricane but also because of news of trouble with exports complications in North Asia and also because of strong European gas prices following less Russian export volumes.
Given the number of bearish fundamental and technical storylines in the press it is not surprising to see the crude oil market ranging down sharply with another new low for the move. If we were to rank the importance of the bearish developments this week, at the top of the list would be ongoing market chatter that Chinese purchases are set to slow because inventories have been restocked or because of soft seasonal demand. 2nd on the list of primary bearish forces is likely the disappointment from EIA implied gas and distillate demand readings from the EIA.
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