Dramatic Turn Colder Leads to Spikes in Natural Gas Forward Prices

摘要

A major flip in weather models last weekend turned the natural gas forward markets on their head as a substantial increase in the expected intensity of medium-range cold lifted December prices by an average 39 cents from Nov. 1 to 7. January rose by an average 38 cents, while the balance of winter (January-March) climbed by an average 31 cents, according to NGI’s Forward Look. Nymex futures led the rally as the December contract started off Monday’s session nearly 20 cents higher than Friday’s close as forecasts showed above-average gas-weighted degree days beginning Friday and continuing through Nov. 18, with heating demand expected to peak around Nov. 14, according to Bespoke Weather Services. The prompt month went on to settle that day some 28 cents higher day/day at $3.567.