Nymex natgas futures rolled from the October to the November contract on Monday. The effect of which was as follows:
The above move comes despite more than ample supply in the physical prompt market, leading analysts to increasingly speculate that the price action must be linked to fears of very cold weather this winter — something which makes those mysterious January call options at $10, taken out last month by an unknown hedge fund, much easier to rationalise....MORE
We noted the weather angle earlier this morning in "Oil market "teetering on the edge," warns Verleger (44% Drop?!)". Just to emphasize:
Northeast-cold-fuel oilStay warm.
Midwest-not so cold-natural gas