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.
