Nat gas prices lower despite record cold as traders discount lasting impact

|By:, SA News Editor

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.