Natural Gas - Nothing Too Exciting Just Yet

Natural gas prices have remained largely rangebound. December contracts continue to trade right around $3.5/MMBtu. Following an early start to the heating demand season this week, the weather outlook through the first half of November is not bullish.

TDD Chart

6-10 Day

10-15 Day

In order for natural gas to meaningfully gain traction, we would need to see prolonged cold. At the moment, momentary cold spells will keep prices largely rangebound amidst elevated supplies.

One thing in particular to note, however, is that our implied balance for this week shows a massive draw of 29 Bcf.