The markets are starting to price in the idea of rolling-over temperatures, I believe, as we are in the October contract, which is the beginning of autumn in the United States and the first hints of heating.
If we were to turn around and break down the lows of the last several days, then I do see support at $2.70 that might be worth exploring.
Ultimately, this is a market that tends to be stronger in the winter because of demand, weaker in the summer with the exception of heat waves. Right now, there are hot temperatures in the United States, but we have some of the largest amounts of inventory going back multiple years right now, and that’s a bit of an overhang here. I think neutral is the best way I would describe this market, as there really isn’t anywhere to be right now. As we get deeper into the year though, this could change.