NEW YORK: US natural gas futures slipped slightly on early Monday, but still cold Northeast and Midwest weather forecasts for this week helped limit the downside.
The NYMEX front-month April gas contract slipped 1.4 cents to $4.389 per mmBtu after trading between $4.381 and $4.475.
The April contract, which expires on Tuesday, hit a seven-week intraday high of $4.432 on Friday and gained 6 percent for the week.
Technical traders said the chart picture turned bullish this month as the nearby contract rallied some 18 percent off the 3-1/2-month low of $3.731 struck in early March.
But some said the market may be overbought and due for a pullback.
Despite recent gains, many remained cautious, noting that short-covering, not new buying, had fuel most of the upside this month. Total open interest has fallen by 73,000 contracts, or 7.6 percent, so far in March, mostly as prices gained.
Some said the still-sizeable net short futures only position held by speculative funds could back further upside if bullish technical signals continued to force more covering.
Comments
Comments are closed for this article.