Energy Market Outlook – Oct. 13, 2017


Author: Jason Scarbrough

La Nina buyers are locked and loaded in the natural gas futures. Yesterday’s report showed a net injection of 87 BCF ending Oct 6, 2017, which was NOT a bullish report; however, the market rallied and has a small follow through with that rally today. This week’s report was above the market’s expectation, which was centered around a 82 BCF injection. The number is neutral against the five-year average injection of 87 BCF, but relatively bearish given the past several reports falling well below the five year average and missing estimates on the low side for the past 3+ weeks.

The anticipated cooling demand that was released yesterday by the updated NOAA La Nina watch is likely the source of the Bulls’ cajones  (along with a little bit of a short squeeze). Next week’s report is shaping up to be another one with some heft to it, so it will be interesting if this can turn into a rally and breakout of the consolidation range gas has been trading in for the past two months.

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