October 19th, 2022 – Natural Gas Update
Natural gas remained on the defensive again today, led by another boondoggle in the European markets. The Dutch TFF Dec 2022 through February 2023 natural gas contracts all lost a little over 4% as other sources of energy, such as coal, race to fill the supply void. On the demand side, the old adage; “High Prices cure High Prices” is also likely in play. The weaker tone was echoed Stateside with the front month November 2022 NYMEX Natural gas contract shedding 5.05% to settle at/near the June/July lows that we talked about yesterday. There should be some buying interest here as traders backstop against the $5.20 level and roll the dice on an upside surprise. All in all, prices have come down sharply over the past few weeks, some pause, if not a bit of buying interest doesn’t seem out of the question.