Good afternoon, folks and welcome back to another market update from the RiteRate team.

The December natural gas futures contract was up $0.086 US/MMBtu from yesterday and settled at $4.902. Price action showed the prompt month contract trading in a range of $0.202 US/MMBtu by reaching a high of $5.032 and low of $4.830. Prices are trading between the current support level of $4.781 US/MMBtu and resistance level of $5.394.

The biggest news of the day was the EIA’s weekly storage report. A net increase of 26 BCF from the previous week was shown. These results were in line with analyst estimates. Working gas in storage is still 310 BCF less than last year and 81 BCF less than the five-year average. However this should be enough to supply the upcoming winter demand based on current weather projections. The markets did not find this news favorable because it is uncommon to still have gas injections during this time of the year. Looking forward, it will be interesting to see if the increase in power generation from wind continues to put downward pressure on natural gas prices. – HM

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