Today has seen a quick recovery from last night’s plunge in Natural Gas futures. The upcoming OPEC meeting is the overwhelming news of the week, and that isn’t likely to change until after December 1st. Last night the consensus seemed to be that Russia and Iran were going to walk away from the table, but these stories seemed to be groundless. As early as 9 am this morning many of these articles have been retracted or corrected.
Assuming no further changes before the meeting, it is possible that we could see UGAZ drive as high as 42.00 by the middle of next week. It is very likely that at least a vaguely worded production agreement will be reached at the next session, and this is going to drive crude prices (and therefore natural gas prices) closer to where they were last year.