The settlement day of any NYMEX contract is typically volatile, with traders shifting capital around, and today proved to be no exception. The Dec-25 contract fell as low as $4.27 USD/MMBtu before climbing back to settle at $4.42 USD/MMBtu, for a $0.13 USD/MMBtu or 2.7% decline from yesterday’s settlement price. The calendar strip (Dec-25 to Nov-26) dropped an average of 2.8%. This marks the end of the Dec-25 contract as the front month. The contract rallied from lows of $4.00 USD/MMBtu and reached highs of $4.64 USD/MMBtu in mid-November.

Aside from contract rollover, the geopolitical news of a potential Russia-Ukraine peace deal helped to push prices down. Traders speculate a deal between the nations will lead to increased Russian gas flows to Europe, driving down the price (and demand) for LNG. The EIA storage report will be released tomorrow, instead of Thursday, due to the US Thanksgiving holiday. The WSJ analyst survey expects a 1 bcf injection, as weather warmed across the continent last week. (PB)