Today was the final day of existence for the August natural gas contract, with September taking over as prompt month starting tomorrow. The story today, however, was the setting of new multi-year lows. The August contract rolled off the board down 2.8 cents on the day, settling just over the $2.14 level.
Part of the reason for the decline was the continued trend toward cooler medium range weather forecasts over the weekend, a risk that clients were alerted to in Friday afternoon's "Pre-Close" Update.
The area of below normal temperatures forecast in the 11-15 day period was more expansive this morning thanks to a large upper level trough projected to move through the eastern half of the nation.
(Click on image to enlarge)
This translates into a period of weaker demand for natural gas, as measured by our "Gas-Weighted Degree Days" (GWDDs).
Comments
Log in or sign up to join the conversation.