Natural gas prices settled down three-quarters of a percent today, again not seeing all that large of a trading range but trading outside the even tighter range of yesterday.
The result was another tick lower in the average prompt month daily trading range, which sits below 5 cents for the first time in at least the past 6 months.
While some had hoped that today’s EIA withdrawal announcement would induce volatility, the print showing a net implied flow of -57 bcf last week fell right within most expectations, not moving the market significantly.
While we had expected a slightly tighter print of -62 bcf, this certainly fell within what we saw as possible too, and accordingly prices moved very little upon its release. The number fit broadly with past data from previous weeks as well.
Into the settle then we saw the most weakness at the front of the strip, like we observed yesterday.
The result was a pretty noticeable tick lower in the April/October J/V spread.
Meanwhile, V/F recently pulled back from new highs.
Subscribers were made aware that prices could pull back quite early today, as we sent out our Morning Update when prices were flat on the day and noted a loss of 6 GWDDs overnight.
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