A two-day 10.7% rally helped natural-gas futures to a three-week high of $2.684 per mmbtu on Friday Feb. 17, partly sparked by more-than-expected supplies decline, Encana (ECA) shutting in production, and traders’ short-covering.
U.S. natural gas futures just recently plunged to a 10-year low in mid-January hitting $2.32, and have dropped more than 50% from 2011 peak of about $5.00 in June, and the current market fundamentals suggest the recent artifical rally could not be sustained for long.
