- Despite the coldest temperatures in 20 years in much of the U.S., futures prices for natural gas have still lost ~6% for the week on the expectation that the unusual, extreme weather is not a lasting trend to bet on.
- Also, supplies are strong thanks to the domestic shale boom, and if prices didn’t spike this week of all weeks, then they probably won’t, Myra Saefong writes.
- U.S. total natural gas demand hit a record Tuesday, but it had already dropped 13% by the next day - all the while never reaching $4.50/Mbtu.
- “Price action in the futures market is afraid of running this trade before it gets confirmation that the gas consumption is going to indeed be fully as vast as imagined - and that is not a sure bet in our view,” says Global Hunter's Richard Hastings.
- ETFs: UNG, UGAZ, GAZ, BOIL, DGAZ, UNL, KOLD, NAGS, GASZ, UHN, DCNG.
Nat gas prices lower despite record cold as traders discount lasting impact
Jan 10 2014, 10:56 ET