Natural Gas Continues To Look Weak

Thursday's natural gas storage number only helped to send an already weak spread, even lower.

Storage came in at 87 BCF vs the market consensus of 76 BCF. The October contract was a bit all over the place as it was going off the board, however our spread continued its path to a lower close .

Looking at the weather situation, the NOAA 8-14 day forecast is looking a lot less supportive than what it was only a week or two earlier.

There also doesn't appear to be much in way of storm activity threatening natural gas operations in the Gulf.

So for now I'm happy to continue to hold my short (Nov13/Jan14 bear spread) position as we continue to move into the shoulder season.