Natural gas prices plummeted today following a bearish EIA print showing that for the week ending September 15th we injected 97 bcf of gas into storage.
This crashed natural gas prices over 4.5% on the day and back through the 30 and 60-DMAs. Prices are still above their pre-Irma levels, when traders were rushing to price in just how much demand would be lost across Florida, but the spike on Monday has been canceled out as prices are now far lower on the week.
Despite the prompt month contract selling off this bearish EIA print, significant heat today and over the next few days kept cash bid rather significantly in comparison.
The result is that we ended the day with some of the most significant cash backwardation that we have seen in the past 6 months.
Forecasts are far cooler as we move through next week, which will pull weather-driven demand back significantly, but it is clear that the market is pricing in a significant cash pullback and that strong cash prices are no longer providing the support that they were earlier in the week.
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