Natural gas prices declined on Wednesday amid a broad wave of risk aversion on the worsening crisis in the euro area and political uncertainty in Italy and Greece, where worries doubled after LCH Clearnet SA unexpectedly raised its margin requirements on Italy’s government bonds, propelling yields on Italian bonds to shatter a record above 7 percent, which provided natural gas prices with bearish momentum on expectations of lower demand for the heating fuel.
Markets are more concerned than ever, especially after LCH Clearnet SA took that decision which could actually cost Europe another massive bailout for debt-trappedItaly, knowing thatPortugalandIrelandwere forced to seek bailouts from the European Union and International Monetary Fund when their borrowing costs reached nearly the same levels. Accordingly, traders are demanding safer havens and are mostly less appealed to higher-yielding assets on Wednesday.
Traders will be following the EIA report for natural gas stockpiles on Thursday, where the EIA report is expected to show that inventories increased by 32 billion cubic feet, and the EIA report will be the major market mover on Thursday.
Thursday October 10:
At 14:30 GMT, The EIA will release the weekly natural gas storage change for the week ending November 04, where the report is expected to show that inventories increased by 32 billion cubic feet, compared with the gain of 78 billion cubic feet.
Originally posted here
