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…
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!