Not a quiet Friday as the natural gas market showed some strength today across the board.
The NYMEX October front month contract was up 10 cents to $2.45 US/mm, the highest level for the October contract in a month.
The winter strip broke out of it’s range and spiked up 15 cents to $3.17.
Next summer strip 2025 also broke out of it’s range to $3.13.
I am reading about late summer air conditioning demand as the reason (and perhaps that is a factor) but I think that winter is around the corner and traders are starting to think about the next season. Furthermore, this is the time when utilities cram the last bit of gas into storage. They are price indifferent in this process. Looking at Dawn pricing, this seems to be the case.
Have a good weekend. [WFG]