US natural gas prices have mostly recovered from their recent declines as November-delivery Henry Hub prices soared past the $6 per mmBtu mark this week. Despite October seeing milder-than-usual weather, forecasts indicating a cooler November have resonated awkwardly with LNG exporters that seek to export every molecule they can with prices quadrupling in Asia and Europe. The so-called widowmaker spread between March and April futures widened to its widest since October 06, at 1.5 per mmBtu, insinuating that the market anticipates end-winter gas inventories to be very tight. Concurrently, LNG exports out of the United States (at 11.3 billion cubic feet per day this week) are at their highest level since May. With the exception of a major breakthrough in the negotiations between Iran and the EU, there is very little downside risk for oil prices this week. Chart of the Week Market Movers – France is rumored to […]