New month, same market! Despite a midday dip, natural gas markets rebounded in the afternoon to post a positive gain for the third trading session in a row. The NYMEX front month rose $0.14 USD/MMBtu or 3.4% to settle at a seven-month high of $4.27 USD/MMBtu. Record LNG flows and colder revisions to the weather forecast for the second week of October support the bullish move. Early November record production volumes of 109 bcf/d, and the high storage volumes keep fundamentals leaning slightly bearish in the near term. The market remains overbought with more traders betting on the market to rise.   

Enbridge storage volumes released on November 1st indicate that the Dawn storage pool has 290 PJs of gas (92% full). The November 1st release is significant as historically it is the last period of injections for Dawn. The current volume is equal to the lowest amount at this time in the last 5 years, 3% lower than last year and 1.5% lower than the 5-year average. On a positive note for storage, Dawn did revert back to injections (from withdrawals) as flows increased on Vector, a major US pipe flowing into Ontario. (PB)