The last two sessions have seen my natural gas spreads break nicely to the downside.
After a little bit of a rally, ironically on the back of an injection into storage, price has fallen away. On Thursday we saw a 63B injection versus a 53B estimate.
I’m looking for the front months to really test the lows and ideally break through.
The next storage report is expected to show a build of approximately 80 billion cubic feet for the week ending April 17, which would be the most on record for the week. Another bearish sign.
So for now I’ll let these spreads continue to play out.
I’m short a few different spreads at various prices, however they are all effectively the same trade.