Though the natural gas market remains range-bound it continues to bounce around violently within its range, with the December contract shooting higher this morning before reversing lower into the early afternoon.
It was the first day with the December contract trading as prompt, and it settled just two ticks above where the November contract expired yesterday, though day-over-day the December contract logged a slight decline.
Prices bounced later in the day on some cold risks Week 2 that Climate Prediction Center forecasts showed well.
In the morning there were also modest long-range cold increases.
In our Morning Update we warned that “…overnight model guidance did seem to keep enough long-range cold risks to spook the market…” but that enough factors kept us to “…still see price downside even today.” Sure enough, prices reversed after the early rally and settled slightly lower.
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