Natural Gas Ends Down, Widening Spreads to Winter

Reuters Africa reported that U.S. natural gas futures ended lower with front-month contracts pressured by milder autumn weather that has decreased the overall demand.

The market news is quoted as saying:

Spreads to winter months continued to widen, with the January premium to October gaining another 0.6 cent to 48.8 cents, its widest settle in four months.

“There are expectations for some big storage builds in the next couple of weeks, and the weather is cooler, so demand has backed off some,” a Houston-based trader said, noting wider spreads to winter months could prompt stronger storage builds. The October-January spread has spiked 24 percent in the
last 10 days but remains well below the 72.5 cents seen last year at this time.

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