The October natural gas contract settled just a cent lower Friday compared to last week, rallying Monday and Tuesday before reversing Wednesday and Thursday and selling off today.
We saw short-term upside into resistance from $2.85-$2.88 as possible with any rallies failing but $2.75 support holding.
Friday we saw about equal weakness along the front of the curve too, though on the week the winter strip got hit much harder than the October contract.
Meanwhile, an outage at the Brunswick nuclear power plant in North Carolina resulted in another tick higher in nuclear outages Friday.
The main story with Florence continues to be the very heavy rain across the Southeast that is resulting in widespread flooding and decreasing cooling demand, however.
This seemed to play a role in some of the weakness in physical natural gas prices. It also helped V/X tick back down after a very significant run-up recently.
Headed into the weekend we do not see many catalysts and expected a slow day with $2.78-$2.82 the primary range and $2.75-$2.85 certainly holding. After yesterday’s EIA and with Florence risk is a touch lower, though sentiment overall neutral. That risk lower was realized with it being primarily focused at the front of the strip as the H/J March/April spread took another leg lower.
