Reuters reported that a bearish US Energy Information Administration report showing that gas inventories increased by 47 billion cubic feet caused gas prices to drop; however, worries about Tropical Storm Isaac helped prices recover.
As quoted in the market news:
Front-month gas futures on the New York Mercantile Exchange ended down 2.4 cents, or nearly 1 percent, at $2.802 per million British thermal units after sinking to $2.682 right after the EIA report. It was the lowest for the nearby contract since late June.
Traders said shorts were likely to remain nervous heading into the weekend. The NHC track shows Isaac possibly steering into the eastern Gulf of Mexico, which could disrupt some offshore gas production and help support prices in the near term.
Gas prices, down about 13 percent so far this month, have been struggling over the last two weeks to hold above key technical support in the $2.70 area.