Wednesday, September 23, 2020

Natural Gas Rises 13% Because Reasons

Oh good grief.
I could have chosen bee-keeping.
But noooo, instead it's the most volatile of the listed commodities, heart attack inducing chair-aerobics.
From Natural Gas Intelligence:

Natural Gas Futures Rise as Last Week’s EIA Print Potentially ‘One-Off Anomaly’
Bolstered by a strengthening weather-driven demand outlook, natural gas futures rebounded sharply in early trading Wednesday. The October Nymex contract had advanced 15.5 cents to $1.989/MMBtu at around 8:45 a.m. ET.

The major weather models have now advertised net gains in projected demand for three consecutive days, Bespoke Weather Services said in its latest forecast early Wednesday.

“A strong upper level trough is projected to dive into the entire eastern half of the nation, with heat parking in the western states,” Bespoke said. “…This pattern would be much more bullish in about a month, as a chunk of the upcoming cooler weather makes its way into the South” where cooling demand is still common at this time of year.

However, it’s still “an impressive early shot of chill and is enough to place demand above normal next week on the national level.”

Looking at the overall fundamental picture, Bespoke said record storage levels remain “the main concern over the next few weeks, keeping the front end of the curve detached from winter-dated contracts, where the bullish fundamental picture is still intact.”....

La la la la la, OMG