As the week comes to a close, the NYMEX front month continued its fall, dropping to $2.89 USD/MMBtu. This marked the end of a highly elastic week where prices soared to as high as $3.10 on Wednesday before snapping back to today’s low, ending $0.07 USD/MMBtu below last week’s final settle.  

Concern over running out of gas through the winter has largely disappeared as lower 48 storage injections have been near record highs for the past month. The November-December spread (difference between the two months’ NYMEX prices) is the widest it has been in 16 years, signifying market sentiment that there will be far too much gas before cold weather starts in December. Extreme weather can always change the equation, but fundamental indicators show this winter being on the bearish side. (PB)