Weather Potentially ‘Bearish’ into Late October as Natural Gas Futures Extend Slide

With prices finding little support from mild weather shaping up after the current week, natural gas futures extended their recent slide in early trading Wednesday. After plunging 23.4 cents in Tuesday’s session, the November contract was down another 10.4 cents to $2.457/MMBtu at around 8:50 a.m. ET.

Natural gas futures had a “tough day” Tuesday, observed Tudor, Pickering, Holt & Co. (TPH) analysts, but they don’t expect the sell-off to mark the start of a “prolonged slide” for prices.

“In our view, gas got caught up in a broader market sell-off, largely mirroring oil on the day, while a pop in production and concerns around a second wave of Covid-19 weakened the fundamentals,” the TPH analysts said.

Still, TPH projected that 13 of the next 15 Energy...