Bullied by sudden and seldom-seen agreement between private and governmental weather forecasting agencies last week, natural gas futures spiked 40-50 cents higher Wednesday evening and Thursday as traders initiated long positions that they had liquidated over the past several weeks.
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Futures Spike 46 Cents as Forecasts Call for January Thaw to be Short-Lived
Bullied by sudden and seldom-seen agreement between private and governmental weather forecasting agencies, natural gas futures spiked higher Wednesday evening and Thursday as traders initiated long positions they had liquidated over the past several weeks. Nymex reopened with a bang at 7 p.m. EST Wednesday evening as prices rebounded more than a dime off Tuesday’s $4.789 close.
Bears Ride Negative Forecasts Lower. Again
Natural gas traders were greeted yesterday morning by somethingseldom seen in recent years – a serious blast of below normaltemperatures in the key gas-consuming Northeast U.S. But evensub-freezing temperatures and gale force winds, which are expectedfor much of the eastern seaboard today, were not enough to overcomethe deleterious effects of forecasts calling for a quick return toabove-normal temperatures by the weekend. After an early buyingsurge failed to punch through $2.42, the January contract cameunder a heavy wave of selling that propelled prices lower to finishat $2.304, a 4.8-cent decline for the day.
Eastern Prices Soar on Cooling Load While West Falters
The geographic divide between gas markets seldom has been moredistinctive than it was Friday. Opposite corners of the U.S.represented the extremes: Northeast citygates skyrocketed by nearly20 cents while the OFO-hit Southern California border plunged byabout 20 cents. In general it was another case of East being Eastand West being West, and the twain had almost nothing in common.