The natural gas market seems to be entering an interesting phase at the moment. Gas futures have been relatively torpid over the summer, as one would expect.
Following Russia's invasion of Ukraine, and the spectacular gyrations in gas prices that conflict produced, governments have been working hard to secure alternative sources of gas, and also to store as much as their capacity will allow.
There seem to be a couple of catalysts at work here: there is the seasonal expectation of buyers in the futures market which should move gas futures out of range, and any news of conflict pretty much anywhere in the Middle East, has traders buying oil and gas as a knee jerk reaction.
Natural Gas futures trading at highest point since January
Thus it is no surprise to see US front month gas futures trading at their highest point since January. Further out on the curve, there is less activity in the futures market as yet. December 2023 gas futures are trading at around $3.75 MMBtu. January 2024 prices have been nudging $4.
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