Helping Business Weather the Storm

Cold Weather to Impact Natural Gas Prices

by Mike Eilts, on Nov 13, 2015 11:43:20 AM

Anomalously cold weather is likely to arrive in the West and Central Plains in the next few weeks.  Most of us are not ready for it because it has been a warm fall thus far. Natural Gas prices are priced as if it is going to stay warm too…

Energy Flash Report - November 13, 2015WDT’s long range forecast experts, Ed Berry and Dr. David Gold, along with our partner Andy Weissman, launched a Special Alert to our customers yesterday stating that cold weather is coming.

Here is that SPECIAL ALERT.

  • The chances of a cold shot through the middle of the country have been developing throughout the day; see Weather Decision Technologies’ newest forecast, below
  • With the natural gas market struggling to find direction, this could be particularly significant for  the winter-month contracts
  • Any cold development, even if short in duration, would be a significant departure from current market expectations
  • Given the record number of net shorts, the front-month contract could rise sharply from currently depressed levels
  • Tomorrow’s issue of Andy Weissman’s Energy Flash Report will provide further updates and analysis

A follow-up Energy Flash Report was sent to our customers this morning indicating, much colder temperatures over the next 3 weeks resulting in potentially higher natural gas prices. Natural gas prices are already moving this morning!

If you are interested in receiving a free trial subscription to the Energy Flash Report, containing industry insights and the most accurate long-range forecasts, click here! 

View today's Energy Flash Report.

Topics:CEO Corner