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Active US natural gas futures are trading at a $0.56 discount to contracts 12 months out, a structure known as contango. The article says contango has historically coincided with weak prices and notes that futures have fallen about 16.6% since the curve flipped in December 2016.
It also contrasts this with backwardation, which accompanied strong price periods.
A contango curve signals that the market expects soft near-term gas demand, which points to cheaper energy for feed processing. Forward gas-cost expectations remain subdued.
marketrealist.comRabindra SamantaFeb 16, 2017Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
