Monday, December 14, 2015

Natural Gas: Arctic Oscillation Index Turns Negative

Which means somewhere in the Northern Hemisphere is going to get colder as cooler air descends from the north..

Where is a tougher question, usually informed by the ridges and troughs of the jet stream and in this case it looks like the U.S., so a visit to the market to see what's on sale might be in order.

Front month January's 1.901 -0.089 after trading as low as 1.862; February's 1.965 -0.085 off a 1.929 bottom.

You'll note this is the deepest negative the index has gotten in almost two months which had allowed a lot of El NiƱo warmed air to head north. From NOAA's Climate Prediction Center:
Observed Daily Arctic Oscillation Index.