Natural Gas Daily Fundamental Analysis for May 23, 2011

Natural gas prices rebounded on Friday, after falling heavily on Thursday due to the EIA report for natural gas inventories, which showed the biggest rise since September 2010, where the EIA report showed natural gas inventories increased by 92 billion cubic feet.

Nonetheless, natural gas prices rebounded on Friday amid speculations of a heat wave that will hit Eastern of the United States, which led to expectations of rising demand on power fuel, and accordingly, natural gas prices rose.

Based on expectations of higher than average temperatures, we should expect natural gas prices to rise on Monday, although rising supply of natural gas in general could still weigh down on prices over the short term.

Source: http://www.commoditiesmansion.com/fundamental-analysis/natural-gas-daily-fundamental-analysis-for-may-23-2011/