The inability for the natural gas market to move higher early this week with above-normal temperature readings across much of the U.S. is certainly not a bullish omen.
The strong storage injections made over the first 11 weeks of the injection season should push end of October storage levels to a new all-time high exceeding the 3,929 Bcf peak reached in 2012.
If this prediction holds true, new price lows toward the end of summer are expected.
Increased power generator demand should continue to be a supportive feature as is decreasing production which some models suggest has fallen by over 3 Bcf per day from December 2014.
If production does fall, the lows set in upcoming trade could be a multi-year price low for the natural gas market.
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