The energy worlds most hopeless case just twitched an eyebrow. But natural gas isnt ready to leave intensive care just yet.
Having plunged below $2 per million British thermal units in April, front-month gas futures have since bounced 27%.
This reflects rekindled hopes that bloated gas inventories might moderate. These typically get run down during winter and rebuilt over summer, peaking in late fall.
This year, though, a mild winter kept more gas in storage, and the current inventory is 31% above the maximum level reached at this time of year between 2007 and 2011. Fears that U.S. storage capacity of about 4.2 trillion cubic feet might fill up entirely this year and force some dumping of gas into the market explains why prices fell so low.