Natural Gas Spot Prices in Driver Seat as Futures Sell Off

June Nymex natural gas futures fell to a more than three-week settlement low to start this week, all but erasing the prompt month’s premium to slumping spot prices.

Near-term fundamentals are likely to dictate movements in futures pricing as June enters its final stretch at the front of the curve, according to NGI’s Patrick Rau, senior vice president of research and analysis.

“From a technical analysis standpoint, June has had three major bearish moves in the last week,” said Rau. These include “breaking below its upward sloping channel last Tuesday, falling below its 200-day simple average on Thursday, and gapping lower to start weekly trading…”