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Natural gas fell sharply in early November after the November contract settled at $2.764 per MMBtu and the December contract lost nearly 10% in its first four trading days. Lingering summer-like temperatures and forecasts for above-normal temperatures through November drove the decline.
Storage was 4.9% above the five-year average, and end-of-year storage was projected above 4.0 Tcf.
A delayed heating season and large projected storage levels point to continued injections and weak prices into winter. This bearish outlook also affects electricity markets that rely on gas-fired generation.
burtonenergygroup.comKristenMNov 3, 2016After 104 past bearish weather events, Natural Gas moved a median -7.8% over 5 sessions (22% higher; middle half -14.8% to -0.8%), and -3.3% over 20.
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.
