Today was another explosive day for natural gas markets. Morning sentiment saw the NYMEX front month drop $0.08 USD/MMBtu after yesterday’s rally. However, momentum changed rapidly following the release of EIA injection volumes well below expectations. The November contract rallied up $0.22 USD/MMBtu from the earlier low point to reach as high as $3.59 USD/MMBtu. Afternoon selloffs saw the market drop again to ultimately settle at $3.44 USD/MMBtu, a $0.034 USD/MMBtu or 1% decrease.

Despite the drop off in the November contract, the December contract onwards all showed gains at settlement. The Feb-26 contract was the largest riser, increasing by $0.06 USD/MMBtu to settle at $4.19 USD/MMBtu, its highest price since August 8th.

Even with the bullish injection volume of only 53 bcf this past week, lower 48 storage inventories are still 21 bcf heavier than last year and 171 bcf heavier than the 5-year average. Record highs for LNG flows in September support an otherwise bearish fundamental landscape with high production, limited weather-related demand, and high storage volumes. (PB)