The NYMEX October natural gas futures contract settled 8.8 cents higher Friday, at $2.885/MMBtu, on technical buying.
The rally is "driven more on technical buying than fundamental reasoning," said Gelber & Associates analyst Aaron Calder, who noted that there is rising support from the 100-day moving average "which stands at $2.717[/MMBtu] today and will continue to rise for at least the next six weeks."
According to sources, the recent below-average storage injections have alleviated concerns that the injection season could close out above total inventory capacity.
"The market is taking a forward look at what kind of demand we will have in the winter season," said Gene McGillian, a trader with TFS Energy Futures.
The contract traded Friday between $2.790/MMBtu and $2.899/MMBtu.
