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Snow storms in North America have resulted in increased demand for heating fuel. The weather forecast continues to look bleak, with more snow expected over coming days. Natural gas is now trading just above 4.23 and is enjoying a solid near term uptrend. There is potential for another short term squeeze higher, particularly into the 4.30 region as trading volume continues to pick up.
According to Bloomberg, trading volume was 58% above the average yesterday. Should volume continue to accelerate then we could see the gains in natural gas remain underpinned.