Monday, December 9, 2013

"Natural gas prices rally to 6-month high on freezing U.S. weather"

Over $4.20 as the cold weather reaches the NYMEX.* The 2013 high was $4.408/MMBtu on April 19.
$4.2140 last and I'm getting antsy to bid the trade adieu. It has been 48.9 cents since the Nov. 19 call at $3.7250.
From Investing.com:
Natural gas futures rallied to a six-month high on Monday, as updated weather forecasting models pointed to freezing temperatures across most parts of the U.S.
On the New York Mercantile Exchange, natural gas futures for delivery in January traded at USD4.193 per million British thermal units during U.S. morning trade, up 1.9%. Nymex January gas futures rose to a session high of USD4.212 per million British thermal units earlier, the strongest level since May 29.

The January contract settled 0.44% lower on Friday to settle at USD4.114 per million British thermal units.

Natural gas futures were likely to find support at USD4.103 per million British thermal units, the low from December 6 and resistance at USD4.228, the high from May 29.

Updated weather forecasting models called for severe cold weather across most parts of the U.S. during the next three-to-five days, with continued cold across most of the nation expected in the next six- to-ten days....MORE
*I've mentioned a few times one of the odder anomalies I've come across, here's Dec. 7, 2011
When options on the futures were introduced in 1992 a buddy of mine eschewed all weather reports from the Midwest and Great Lakes figuring that the only temp that mattered was whether or not the traders felt cold at the exchange.

He retired rich, I don't know if there's a correlation....
See also:
Friday's "Natural Gas: EIA Weekly Supply/Demand Report":
Today's top tick was $4.1990 which may hold until the NYMEX guys feel chilly next week.
$4.13 last UNCH.
One thing I failed to point out on yesterday's storage report, the report covered the week ended Nov. 29 i.e. before the ridiculously cold batch of air came down to visit. This week's temps will be reflected in next week's storage report.
Thursday's "Natural Gas: Extremely Large Drawdown From Storage Pops Futures Through Resistance".
And Wednesday's "Natural Gas: Polar Air Sweeps Into U.S. Bringing Snow and Ice".