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Calendar 2017 gas futures hit 16-month highs last week. The rally followed delays to two major Northeast US pipelines, Rover and Atlantic Sunrise.
Funds added bullish positions on concerns that supply may not keep pace with demand and forecast export growth.
Pipeline delays limit how much Appalachian gas can reach consumers and export terminals, which supports forward prices. Stronger export demand adds upside pressure on gas prices into 2017.
reuters.comBarani KrishnanOct 28, 2016After 54 past bullish logistics events, Natural Gas moved a median -1.8% over 5 sessions (43% higher; middle half -5.7% to +6.2%), and +5.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
