The NYMEX front month halted its rally today, falling $0.02 USD/MMBtu or 0.7% to settle at $3.45 USD/MMBtu. The colder winter months of January to March fell $0.05 USD/MMBtu as liquidity has largely shifted later into the winter. Reminder that the November contract settles on Wednesday, October 29th. The decreased volatility today reflects traders’ patience for the fundamental reckoning of Thursday’s storage report.

It is important to note that despite the rally from revised colder weather this week, forecasts remain at normal for the start of November. As we enter November, traders will begin to more aggressively discount winter each week the temperature remains at or above normal. Lower production volume and high LNG demand provide bullish support, but the prevailing near-term sentiment around market fundamentals continues to be bearish. (PB)