Natural Gas Turns Explosive
A deadly explosion at a New Mexico pipeline has cut supplies to some some
western states, exacerbating an already tight supply situation in natural gas.
Gas has posted its biggest up day since June, +6%, and is trading at a new
contract high. Nat gas continues to make good on a
Pullback From Highs
setup and could trade even higher if tropical storm Debby turns into a
hurricane and moves to the Gulf of Mexico. Hurricanes that hit the Gulf cause
supply disruptions when crews are evacuated for safety reasons.Â
Crude, unleaded gasoline and heating oil, the three
contracts leading the Momentum-5
List, are also rallying on concerns that OPEC will not bring enough oil to
market to avert supply shortfalls. Heating oil is thought to be particularly in
tight supply and inadequate to meet winter heating demand.Â
Cotton has broken above a crucial line that has proved
pivotal in the contract for months and has surged to a contract high. In the
Futures Market Outlook on Friday, I pointed out how this contract could likely
eclipse this line and rally. The chart is provided.
