Natural Gas

I've been riding this spread for a while now and I feel we are right on a knife's edge at the moment. Nat Gas has really been getting pushed around by inventories lately. After an extended cold period coming out of the winter we've finally seen a build in inventories over the last two weeks.

Hopefully this is a sign that this bear spread might be in play. However the worry is that with the extended cold weather the traditional shoulder period of lower heating demand has been reduced so we won't get the large move down that we've historically seen.

This spread traded as low as 71 on Friday but showed a little sign of a reversal in late trade. It's always dangerous when a spread can't close near the lows after a large push to the downside.

I'll be watching this one closely on Monday.