Monday, May 13, 2019 at 4:18PM
Natural gas prices closed today's session with only a small 2 tick gain in the June contract after a lot of back-and-forth. Prices first dropped early in the morning, followed by a sharp rally based on stronger cash prints. That rally was unable to hold, however, due to selling pressure in later-dated contracts, which mostly closed down on the day. Our morning report correctly highlighted the possibility of choppy price action, taking a neutral stance, which proved to be the correct lean once the smoke had cleared. Some warmer weekend weather forecast changes did show up, taking forecast demand a little above normal thanks to some early heat in the eastern half of the U.S. over the next couple of weeks. GEFS 6-10 day forecast temperature anomalies: This equates to widespread highs in the mid 80s to even low 90s in the southeast quadrant of the nation on the hotter days. It marks the first real taste of summer in terms of widespread above normal heat, as we move closer again to a time of year when weather becomes crucial to the natural gas market. Is this early heat an indication that the U.S. will face another hot summer this year as we saw in 2018? Sign up for a 10-day free trial here and take a look at what our latest research suggests for the upcoming season and its impact on natural gas prices!