Happy Monday
Welcome back to another week.
The NYMEX December front month contract began trading last night at 6pm by opening at $2.56 USD/mm, down 9 cents, but don’t forget that at that time, the market is very thin (not many buyers nor sellers), so one or two market orders can drive the market. The market began to rally at 7am and marched up to $2.78 by 3:30pm.
The rest of winter strip (Dec to Mar) was up 8 cents to $2.77. The summer 25 strip was up 4 cents to $2.95.
These all opened below Friday’s low and then traded above Friday’s high (today was an Outside day). All are still below previous support levels, but this pattern might be an early sign of some strength here, so keep an eye on this.
Of course, traders who sold last week might be flattening their book before the American election tomorrow, since that is a real wildcard.
The storm in the Caribbean Sea is expected to form tropical cyclone #18 and move north into the Gulf of Mexico towards the Louisiana coast. Some indications are that the wind shear in the northern Gulf of Mexico might inhibit some formation, but the sea temperatures are still very warm (which is where a hurricane gets its energy from). Not expected to make landfall this week, but keep a close eye on this one because there are LNG facilities in that area. Image from NOAA:
[WFG]