The March natural gas contract was finally able to hold onto some gains today, settling up a bit over a percent on the day as afternoon weather model guidance turned back colder after recent volatility and balances began to improve.
(Click on image to enlarge)
It was actually the fall strip that was the biggest winner on the day, though, with the September contract leading the way higher.
(Click on image to enlarge)
The March/April spread was essentially flat on the day despite a decent rally at the front of the strip.
(Click on image to enlarge)
This came as LNG exports finally came back online today.
(Click on image to enlarge)
In our Morning Update, we warned that those could combine with colder weekend weather to strengthen cash today, which turned our sentiment "Slightly Bullish" as the March contract seemed to have a floor at $2.55 despite overnight GWDD losses.
We also warned that 12z model guidance and Week 3 forecasts were more likely to trend bullish than yesterday.
This verified well, with afternoon model guidance shooting back colder with Climate Prediction Center Week 2 forecasts cooling today.
Comments
Log in or sign up to join the conversation.