November prices have come down yet again today, although the downward price pressure has been limited out to March 2021. Yesterday we mentioned that the market was bullish due to the minimal disruption from Hurricane Delta. Today other factors have changed that outlook. Warmer weather expectations for early November are being reflected with constant forecast updates. The Cameron liquefied natural gas facility is also facing limited access from a sunken barge, reducing the demand for natural gas. A lot of uncertainty surrounds the timeline for resolution here, so we’ll have to wait and see how things play out. Lastly, some supply of natural gas has already returned as producers rejoin the marketplace.
Tomorrow marks the weekly release of the Energy Information (EIA) natural gas storage report as we look to round out the shorter week. See you then!