Injection Below Expectations
The EIA reported a 51 bcf Injection for the week ending July 6, 2018. Because of hot weather conditions, the 51 bcf injection was one of the lowest injections for this week of the year, and below the average of expectations at 53 bcf injection, with a range of a 42 injection to a 63 bcf injection.
Surprisingly, prices dropped when the report was released given the bullish nature of the report. Prices remained weak and ended the trading day near the lows.
Prices have decreased by nearly 22 cents (-8%) from the highs in mid-June. We would not recommend going short in this market, but to wait for an established upper trend in prices before trading from the long side of prices as the fundamentals of supply and demand remain bullish.