Kevin Dobbs

Natural gas futures rallied five out of six sessions leading into Wednesday in large part because of expectations for a paltry storage print this week.

Natural gas futures hovered in a narrow but positive range to launch trading Wednesday, with bulls focused on late August heat, lower production, and forecasts for an anemic storage print.

Natural gas futures rallied early Tuesday, bolstered by late August heat forecasts and expectations for a paltry storage result. However, after five days of gains, traders took profits by midday and sent the prompt month lower.

Natural gas futures were treading lightly early on Tuesday, with traders assessing recent bullish supply/demand signs that ignited an August rally against the unknowns of another potential hurricane lurking in the Atlantic and stubbornly high storage levels.

While the market remains flush with supply, signs of favorable fundamental shifts caught the attention of money managers and powered a natural gas futures rally that spanned most of last week and through early afternoon trading Monday.

Natural gas futures kicked off the trading week where the market finished the last – pushing upward on the heels of favorable weather forecasts, lighter supply readings and bullish bets by fund managers.

Natural gas futures on Friday forged ahead through midday trading, putting the prompt month on target for its fourth gain in as many sessions, though it pulled back and hovered near even by early afternoon. Weakness in West Texas pressured spot prices lower.

For the fourth consecutive week, underground supplies of natural gas in storage in the South Central dwindled, bucking seasonal norms as every other region injected excess fuel into underground stocks.

Natural gas futures were up early Friday and headed toward a fourth consecutive day of gains as traders digested a bullish storage print, lighter production estimates and a looming heat wave.

Natural gas futures on Thursday fell early but gained ground through midday trading as a bullish government assessment of supplies in storage overshadowed near-term weakness in weather demand. However, the prompt month then retreated to near even in early afternoon trading. Spot prices slipped.