Natural gas prices remain weak with the winter 14-15 (November 14-March 15) and summer 15 (April 15-October 15) strips dropping down to new all time price lows in today's trade.
The winter 14-15 strip set a low today of 3.867 falling 5 ticks under the previous low of 3.872 set last November. The summer 15 strip fell to a new low of 3.685, 4 cents under the previous low.
Today's drop to new price lows is important because it could mark the beginning of another leg down in the market following nearly 13 weeks of sideways, range bound trade.
For the winter 14-15 strip, 3.600-3.650 is an area targeted for a possible low and 3.500-3.550 for the summer strip.
Moderate weather forecasts into the end of October and the likelihood for continued higher storage injections over the next 5-6 weeks should keep the market under pressure.
Once the market does bottom, get ready for the winter rally. It may not be as dramatic as last year when spot prices topped out at a 6.490 high in February. But with storage lower than previous years' levels, the advantage at this point shifts toward the bulls.
One hint of winter demand and it will be "off to the races".
No comments:
Post a Comment