Natural Gas Cash Price Decline Accelerates

Physical Natural Gas for delivery Nov 14 thru Nov 16, 2009 declined steeply Friday (the 13th).
At virtually every delivery point, prices were down between .70 cents and .90 cents, for a decline of almost 50% over the last 10 days. The reported lows on the day ranged between 1.95 in the West and  2.55 in the East.

It  is probably safe to say that the degree of the spot differential and the consistency of it, reflects
the scarcity and expense of storage. With temperatures continued to be forecast above average for most of the country for the next couple weeks ( and months) the front month contango can easily widen.  It will be interesting to observe the curve going forward.


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