Natural gas roll costs increase, but are not a major concern.
CONTANGO WATCH: Natural gas’ contango widened a bit this week, but remains typical for this time of year. At $0.02, the front-month natural gas roll is relatively inconsequential, at least by natural gas standards. More pertinent for traders are weather forecasts, the key driver of natural gas over the winter months. Currently, the NOAA is calling for mild temperatures for the bulk of December, which has pressured prices in recent sessions.
ROLL COSTS: It costs investors 9.79 percent annualized to roll front-month natural gas contracts, up from a cost of 7.99 percent.