Natural gas markets declined today, with the front-month contract dropping $0.11, or 3%, to settle at $4.23 USD/MMBtu. Before this session, the December contract was up $0.53 USD/MMBtu over the last four sessions. Despite the small selloff, the market remains overbought, setting the stage for another important storage report tomorrow. A higher-than-expected injection could catalyze a significant selloff of the overbought positions.

The WSJ survey forecasts a 31 bcf injection volume for last week, following higher LNG flows and heating demand. Weather forecasts across the continent continue to show a steep drop in temperature next week before rebounding to well above normal the following week. US production and LNG flows both continue to push record levels in early November. (PB)