Today was moving day in natural gas as the prompt month October NYMEX futures settled up US$0.83/MMBtu to close out the day at $9.114. The move was new to concerns over the U.S. freight negotiations between the Union and the Biden administration. Essentially, if an agreement is not reached, workers would go on strike and shipments of coal would be hindered. If you’re wondering why this affects natural gas, it’s because without coal, power plants would have to utilize more natural gas to generate power and keep the grid running. If this is the case, the natural gas builds meant for injection will not exist, and the storage deficit will widen as oppose to shrink, which ultimately will place strain on this winter. As always, a long chain gets us to the root cause in natural gas, and we won’t know the outcome for sure until Friday. ~CL

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