US natural gas bounces off recent losses; European gas drops below €100 (NYSEARCA:UNG)

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US natural gas prices stormed back from a punishing string of losses Monday as bargain hunters moved in, with front-month Nymex natural gas (NG1:COM) for November delivery settling +4.8% to $5,199/MMBtu.

ETFs: (NYSEARC:UNG), (UGAZF), (DGAZ), (BOIL), (KOLD), (UNL), (FCG)

Analysts were hesitant to attribute the gains to anything more than an oversold market, but the natural gas’ largest one-day gain in nearly three weeks could mean investment funds and others are making a seasonal return to the market now that the injection season is nearly over and the often-bullish withdrawal season is about to begin as demand for gas-fired heating increases, according to The Wall Street Journal.

On the other hand, the market may not have hit bottom, especially as European benchmark gas prices have been steadily declining – down more than 70% from an August peak – as many countries reach almost full storage and supported by softer demand due to warm weather .

Gas storage across Europe is slightly more than 93%, with the UK hitting full storage, France’s storage level at 99.5%, Germany at 97% and the Netherlands at 92.5%.

Separately, Bloomberg reported gas in the Waha area of ​​the Permian Basin in west Texas traded Monday for as little as $0.20-$0.70/MMBtu, as booming production overwhelms pipeline networks and creates a regional glut.

The Texas price plunge was mostly the result of maintenance scheduled for Kinder Morgan’s (NYSE:KMI) Gulf Coast Express and El Paso Natural Gas pipeline systems, according to Bloomberg.

Through last Friday, US natural gas prices had plunged 49% from a 52-week closing high of $9.68 on August 22, falling for six straight sessions as well as nine consecutive weeks.

back/E+ via Getty Images US natural gas prices stormed back from a punishing string of losses Monday as bargain hunters moved in, with front-month Nymex natural gas (NG1:COM) for November delivery settling +4.8% to $5,199/MMBtu. ETFs: (NYSEARC:UNG), (UGAZF), (DGAZ), (BOIL), (KOLD), (UNL), (FCG) Analysts were hesitant to attribute the gains to anything more than an…

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