Natural gas markets began the day bullish, with the NYMEX front-month contract rallying $0.16 USD/MMBtu, or 4%, in the early morning. As the day progressed, the market slid down to $3.36 USD/MMBtu, only posting a $0.03 USD/MMBtu or 1% increase. Although the Nov-25 contract (front month) was up, the December to February contracts all saw small decreases of less than $0.02 USD/MMBtu.

Increased heating demand is expected over the week as temperatures begin to dip to normal, down from the above-normal temperatures experienced at the start of the month. Ontario in particular will see a stark drop in temperature from 25°C experienced this weekend to 15°C expected midweek. LNG flows in the US have been reaching near record levels at the start of October as Calcasieu Pass LNG flows continue to ramp up. Gas production remains high, but slightly off the September and August record volumes. (PB)