Is the natural gas bull back? Seems so, at least based on what the market’s been doing the past two weeks.
Since surviving a drop to $2 lows on April 28 that resulted in a 11% drop that week, gas futures have gone from strength to strength, gaining 6% the following week and 15% for the current one.
In the latest trading session on Thursday, the hub’s front-month contract settled at $2.5920 per metric million British thermal units, up 22.7 cents, or 10%, on the day. More importantly, the benchmark gas contract hit a two-month high of $2.63 — just clearing the mid-$2 level which has been its ceiling since March.
The gas rally has come on the back of what some sensed as improving fundamentals in America’s favorite fuel for indoor temperature control, despite a supply glut.
Diversified Energy Company plc (LON:DEC) is an independent energy company engaged in the production, marketing, transportation and retirement of primarily natural gas and natural gas liquids related to its U.S. onshore upstream and midstream assets.
