Natural gas prices were off slightly again Friday after their reversal the previous day, attempting to recover a couple times on the day but proving unable to flip positive.
Record production levels clearly weighed on prices, hitting the entire front of the strip.
The result was the October/January V/F spread being flat on a down day for the prompt month August contract.
Overall, though, it was a rather slow trading day, as is typical of Fridays in the summer for natural gas. The day fit within the expectations laid out for clients in our Afternoon Update yesterday.
Natural gas trading this week also hit our ideas from our Monday Weekly Natural Gas Report near perfectly, as prices after their initial dip caught a bid off heat and tighter burns before reversing lower yesterday.
The Weekly Report highlighted the opportunities in both the long and short direction well, with prices closing right above that $2.87-$2.92 support level and reversing off $3-$3.05 resistance. They continue to be aided by very hot forecasts, as seen again by the latest forecast Friday from the Climate Prediction Center.
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