
Natural gas has continued lower and is pressing year-to-date lows with record readings of U.S. gas production, as well as average cooling demand in the wake of a heat wave in the Eastern U.S. earlier last month. In addition, an increase in U.S. and Canadian rig count is expected to continue with Canadian gas rigs operating at the highest level since mid – April. Some warmer temperatures are expected for parts of the lower U.S., however, over a third of the country is expecting below normal temperatures. Prices are trading at their lowest level in more than three years with money managers continuing to increase bearish bets. The market remains bearish trend with today’s range seen between 2.27 and 2.03 with the next downside target seen at the psychological 2.00 level.
