A Shrinking Spread Shows Gas Market Is Far From Over the Glut
- August and September futures contracts close to being even
- Narrowing spread shows persisting concern over gas surplus
This article is for subscribers only.
Traders aren’t convinced this summer’s heat will be enough to burn away the nation’s shale gas glut.
The spread between natural gas for August and September delivery is close to zero, odd considering gas demand typically rises in August as people are blasting air conditioners, Bob Yawger, director of the futures division at Mizuho Securities USA in New York, said by phone. The last time these two contracts traded at parity was more than a year ago.