Welcome to the outperforming edition of Natural Gas Daily!
Despite August contracts retesting the lows near $1.70/MMBtu, natural gas producers continue to outperform prompt month contracts. Now if you take a look at today's price action, you will notice that most of the selling pressure is on the front-end while the back-end is moving up.
Source: CME
So a large part of why natural gas producers have outperformed the prompt months is because of the movement in the curve rather than the movement in the prompt. Another reason why natural gas producers have stopped correlating