Today marks the last full day of trading for the NYMEX February front month contract. It looks like the price has settled at $3.38 US/mm after another big sell-off, a 3-week low. The March contract is currently at $3.09.
Coming up is the spread between the March and April contracts, known as ‘the widow-maker’. This is a period where winter is wrapping up but could drag on longer than expected, storage inventories are depleting, and gas prices can get very volatile (and therefore makes widows as traders make the wrong bet and get crushed). In the weeks going forward, pay close attention to storage inventories and the winter weather outlooks.
The expected storage withdrawal for last week is a withdrawal of -317 Bcf, likely the biggest withdrawal of the season.