Natural gas markets whipsawed from losses to gains in another volatile trading session. Markets started the morning continuing yesterday’s downward momentum, reaching as low as $4.23 USD/MMBtu. Driven by a warmer revision to the two-week forecast, the market was trending towards another heavy down day. However, the trend was sharply reversed at noon, with the NYMEX front month bouncing back to settle flat at $4.37 USD/MMBtu. The strong buying support at $4.25 USD/MMBtu does not appear to be based on any fundamental changes but rather bullish resistance to the recent drop.

Turning our gaze to Dawn, Enbridge released their most recent storage volumes, indicating a significant 7 PJ withdrawal during the first 15 days of November. This volume represents the heaviest withdrawal from Dawn during the first half of November in the last 5 years. The withdrawal was driven by the cold weather in Ontario and the Eastern US early last week. The Dawn cavern now sits at 283 PJs, 16 PJs (5.4%) down from last year and 10 PJs (3.3%) down from the 5-year average. (PB)