Natural gas markets continued their decline following yesterday’s storage announcement. The NYMEX front month fell $0.14 USD/MMBtu or 4%, to currently sit at $3.21 USD/MMBtu. Unlike yesterday, where only the front month substantially dipped, the calendar strip is down an average of $0.07 USD/MMBtu or 2%. Despite today’s decline, the NYMEX front month still ended the week comfortably in the green, with an increase of $0.20 USD/MMBtu or 7% compared to last Friday’s settlement.

At Dawn, the market has entered backwardation, as cash prices are now pricing above the November contract. Looking at Dawn pipeline flows, this has prompted withdrawals to outpace injections as participants capitalize on higher near-term prices.

Looking at fundamentals, weather forecasts remain near normal for the start of November. October production has recovered to be only slightly lower than September, and US LNG exports are at record highs. (PB)