Natural gas prices take a big dip next week

[dan_s]

The FEB24 futures contract is about to expire. The MAR24 contract will become the front month next week. It is currently trading at $2.17.

This selloff is a result of the Paper Traders loading up on near-term contracts when they saw the Polar Vortex coming a few weeks ago. Some utilities will take advantage of this and they will be willing to take the cheap gas and put it into storage.

Of course, another cold wave in February will help a lot.

Gas in storage should get back to the 5-year average by April, which should get the US ngas market back to something close to normal.