Natural gas contracts are red across the board today as temperatures moderate and support from early season cold weather begins to wane.
Forecasts for broadly warmer than normal temperatures in most of the eastern US in days 6-15 will lead to a period of uninspiring, early November demand (see chart below).
Apart from the weather, US LNG feedgas demand recorded new records of over 10 Bcf/d over the weekend.
However, production has now recovered from last week’s shut-ins and is recording its own local highs near 89 Bcf/d. With the December contract currently down 12 cents to $3.235/MMBtu, a further adjustment towards the $3 mark may be necessary in coming days before prices find solid ground.
Source: Gelber & Associates
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