Things were initially ugly in the natural gas market this morning, with the February contract plummeting on weak cash prices as the February/March G/H spread fell to flat. Afternoon models showed more cold risks and a firm strip indicated morning selling was overdone, though, with the whole strip then settling about a percent higher on the day.
(Click on image to enlarge)
The March contract was the biggest loser at the front of the strip, but gains were rather uniform overall.
(Click on image to enlarge)
The result was minimal changes in the day-over-day February/March G/H spread into expiry despite a significant move earlier this morning.
(Click on image to enlarge)
The March/April H/J spread even ticked down on a day where we logged a gain at the front of the strip.
(Click on image to enlarge)
This support came from some more supportive afternoon weather model guidance, which the Climate Prediction Center showed in its Week 2 forecast probabilities today.
(Click on image to enlarge)
LNG exports that are still sitting in the middle of their recent range.
(Click on image to enlarge)
Comments
Log in or sign up to join the conversation.