You might have glanced at your screen this morning and been surprised because the front month looked like it gapped higher from $1.83 to $2.13 US/mm. No, there wasn’t some huge move overnight but rather just a futures rollover to the next month. The May contract expires on 4/26 (this Friday) and charting services have to drop the May front month in favour of the June contract (the next month out), which creates the appearance of a jump in the price. Normal for this week every month.
So rest assured that the June contract didn’t jump overnight. (Chart from Finviz.)
That being said, the NYMEX June contract did start selling off at 8am this morning from $2.11 US/mm to the important $2.00 level, sat there for a while and then sold off to $1.97. This was a real sell off on some good volume.
Reasons given were reduced heating demand next week and the storage injection tomorrow.
Rest of Summer (June to October) traded down to $2.34 and Next winter traded down to $3.43. [WFG]