What goes up must come down! After weeks of the price of natural gas aggressively climbing, markets posted their first significant down day in November. The NYMEX front month fell $0.21 USD/MMBtu or 4.5% to settle at $4.36 USD/MMBtu. The winter months (Dec-25 to March-26) dropped an average of $0.15 USD/MMBtu as traders discounted the highly priced Winter months. The downward trend continued Friday’s movement that was momentarily halted at the $4.40 USD/MMBtu resistance level.

The drop was driven by strong supply and reduced weather-related demand in the two-week forecast. On the supply side, record gas production and Friday’s bullish injection volumes put the continent at a very well-supplied position entering winter. Long-term weather forecasts have highlighted December to be colder than normal, but the two-week snapshot showcased warmer-than-normal temperatures until the end of November. (PB)