Natural Gas

Our natural gas bear spread has been somewhat well behaved this week as we go into today's storage number.

In the front month, natural gas has been continuing to test 4.40 but as of yet hasn't been able to hold above that level. Fundamentally inventories remain lower than last year with slight builds of 30 and 31 BCF over the last two weeks. This weeks consensus is for another build around the 28 BCF mark.

The weather outlook for much of the US is for mild conditions without much demand for heating.

We'll be watching tonight's storage number closely and continuing to monitor the spread.

The current seasonal window runs until May 17.