Natural Gas Futures - November’s Market

Natural gas futures experienced weakness this month. Market behavior this time of year could be telling for the direction of prices for the longer-term outlook. Some variables to monitor - production levels and mild weather anticipated during typically colder months. So the key economic equation of supply and demand had suppressed prices.

Mid-month we saw some volatility in gas due to EIA reports. Conflicting storage data created some uncertainty. These differing reports lead to the nat gas market picking up speed towards recovering prices. With the idea that demand was stronger than anticipated earlier in the month, the market quickly appeared to try and reverse earlier trends.

Weather patterns will need to be monitored to get a real feel for where futures’ prices are headed. If southern states see an abnormally warmer winter, prices will correct and move to lower levels we saw earlier in the year.

Disclaimer: Past performance is not indicative of future returns. Opinions are my own. Profitable trades are not guaranteed.