(Gelber, September 28) November natural gas is rolling into the front position today and plunging lower, as current market weakness begins to weigh on early winter sentiment.
November is currently down 22.5 cents (8%) to $2.57/MMBtu, and similarly strong 12-16 cent losses are also carrying through December to March futures contracts.
Further downward pressure is likely in the near-term until the new front month aligns with continued weakness in spot markets that held that held the October contract down to its $2.10/MMBtu expiration.
Although weather-driven demand is expected to find support from below-normal temperatures going into October, mild temperatures by days 8-15 will begin to cap total degree days (and demand) below historical averages (see forecast in chart).
Source: Gelber & Associates
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