Published Tuesday afternoon, 10/23/12

Natural Gas traded higher settling $3.535 up $0.083 2.6%. The curve was firmer, 13/16 $0.02 better. Hub cash was stronger, ~$0.12 back this morning, Z-6 down $0.10 to $3.50. The 12z was in line w/ overnight models, showing mostly cooler temps Eastern U.S. during the 6-10 day (Northern Plains came in slightly warmer). The 11-15 day was warmer most of the North, West, and East Coasts and cooler South Central U.S. Thursday we anticipate an injection ~65 Bcf, lower than 2011’s 92 Bcf and in line w/ the 5-yr average 68 Bcf injection.

Vol was little changed overall today: (X12 355 11.00 12.50 39.63% -0.72% Z12 385 33.50 35.00 37.11% -0.15% F13 395

46.50 48.00 35.58% 0.38% G13 400 56.00 58.00 34.54% -0.24% H13 395 61.50 63.50 33.87% -0.03% J13 390 64.00

66.00 32.32% -0.06% K13 390 68.00 70.00 31.33% 0.14% M13 395 73.50 75.50 30.80% 0.09% N13 400 78.50 80.50

30.58% 0.06% Q13 400 83.50 85.50 30.66% 0.22% U13 400 88.50 90.50 30.77% 0.01% V13 405 95.00 97.00 31.20% -

0.02%). Technically we are neutral between $3.40-$3.65. Resistance is found at $3.64, $3.75. On the downside we see support at $3.40, $3.32, $3.23, $3.16, $3.07, $2.95.

Editor’s Note: Natural Gas Commentary readers who are equity investors/traders only can gain access to the Natural Gas space through the following exchange traded funds (ETFs).

Natural Gas

United States Natural Gas Fund (UNG, quote)

United States 12 Month Natural Gas Fund (UNL, quote)

First Trust ISE-Revere Natural Gas Index Fund (FCG, quote)

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