Natural Gas Fundamental Analysis Jan. 26, 2012, Forecast

Economic Events: (GMT)

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Analysis and Recommendations:

Natural Gas soared to 2.737 extending gains. It has been a meteoric rise from last weeks bottom of 2.32.

Gas prices have skyrocketed nearly 16% in the past three sessions after Chesapeake Energy announced on at the beginning of the week that it planned to reduce production levels in response to prices falling below “economically unattractive levels”.

There was also a lot of short-covering today driving up prices.

As the warm weather continues, the consumption of natual gas continues to decline and the winter grows closer to the end.

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