After testing the 2.70 level in the prompt month October contract a couple of times earlier this week, sellers have taken control the last couple of days, especially in today's session, which saw prompt month prices decline nearly 10 cents.

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Ironically, just yesterday in our Seasonal Trader Report, we highlighted the risk of such a move back into the 2.50-2.55 range.

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In the spirit of fairness, this occurred quicker than we expected, thanks mostly to a bearish EIA report released this morning. Prices were already lower on weaker daily cash, but the 84 bcf injection reported for last week accelerated the decline.

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This was higher than our estimate, and while the EIA reports have been erratic lately, seemingly alternating bearish / bullish each week, anything close to an 84 is reflective of very loose supply / demand balances, as seen when looking at the last 10 weeks.

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The larger injection came despite a hot, higher demand weather pattern in place, with a lot of heat last week in key areas of the nation.

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Above normal temperatures are forecast to remain quite strong over the next couple of weeks.

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