It has been a volatile ride for natural gas over the past few weeks, and that continued today. Natural gas futures trended lower for most of August, held steady throughout the first week of September and bounded back to the upside today on high volume.
Today, the U.S. Energy Information Administration (EIA) reports it expects natural gas consumption to fall off even as production continues to rise. U.S. storage levels, as reported by the EIA, are at record highs and demand is expected to continue to cool as energy demands decrease through Autumn. This comes as 9% of U.S. natural gas production is still off-line in response to Hurricane Isaac.
United States Natural Gas (UNG) closed Tuesday, September 11 on a five day high up $1.15 on the day at $20.19. This could easily be seen as an upside rebound in response to Friday's lull when UNG hovered around $18.20 all day. Look for UNG to find significant resistance at $20.50.