| November is the start of the traditional heating season. We started this November with some cold temperatures. The arrival of these frosty temperatures created a spike in gas prices.
Fortunately, the rally was short-lived. Today’s update covers the first two weeks of trading from November 1, 2019, to November 15, 2019. During this span, natural gas prices in the forward 12 months actually dropped by 1/3%, and electricity prices in the forward 12 months fell by 1%.
For now, the traders are showing no fear because gas supplies are flowing at record high levels. Additionally, natural gas storage caverns are nearly full.
Storage Levels
During this year’s injection season, which ran April 1, 2019, to November 1, 2019, the gas industry recorded near-record high injections. This season the injection levels were the second-highest net injected volumes ever recorded for a refill season. The only year to surpass this year was the 2014 injection season.
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