Winter futures continued to slide on Monday, extending the bearish momentum from the previous week. The market pushed higher early in the trading session but ultimately failed to sustain those gains amid a midday selloff. The December 2026 contract ended 4 cents lower near $2.86 per MMBtu, while the balance-of-Winter 2026-27 strip fell 2 cents to a fresh five-year closing low near $2.90 per MMBtu. Deliveries beyond March 2027 were virtually unchanged, with selling pressure remaining concentrated near the front of the curve.
With near-term temperature forecasts remaining wholly unsupportive, the market’s path of least resistance continues to point lower. The current outlook could yield net storage injections well into November, potentially pushing inventories toward 3.9 Tcf before the onset of net withdrawals. Near-record domestic production has added to the bearish fundamental picture, even as LNG export demand remains at unprecedented levels.
An archive of Daily Natural Gas Market Notes can be found here.