Another Sell Off

NYMEX November front month contract sold off again today.  As of 1:00 PM, prices are down 7 cents to $2.27 US/mm.  The winter 24-25 strip is down 5 cents to $2.77.  The winter 25-26 strip is down 5 cents to $3.69. Both winters are now below the September lows.  However, next summer 25 strip is trading $2.98, which is holding that September low.  I will be watching closely to see if the summer strip follows the winters down into new low territory, or if it holds firm here. 

The market is reflecting the belief that this winter will not be that cold. 

There are two storms brewing but neither appear to be a threat to the US at this point.  The one north of Honduras should travel across Central America to the Pacific.  The other is north of Puerto Rico and has only a 10% chance of getting organized into a cyclone.  Most likely it will turn north, but it is worth keeping an eye on.

The weather here in Ontario is supposed to be sunny and warm for the near future, so enjoy it while it lasts.  I hope you have a nice weekend.  [WFG]