After two months of natural gas settling above $4, the July contract settled at $3.707/mmBtu. The July contract expired 10.6% below the June contract settlement. After multiple weeks of bearish storage reports, weather reports projecting mild temperatures for much of the United States through mid-July, and utilities switching back to coal-fired generation, natural gas has continued to trade lower as we approach the third quarter. The remainder of 2013 is trading below $3.90/mmBtu and the CY2014 strip is currently averaging below $4/mmBtu.
