Cold weather outlook lifts natural gas to hot gain

  • Natural gas prices (UNG +4%) soar to their highest since March, as forecasts call for cooler than expected temperatures across the U.S. in the coming days and weeks.
  • December Nymex futures +3.5% to $2.809/MMBtu, bringing their rally to ~35% from a multi-year low hit three months ago.
  • Nat gas prices remain lower for the year and well below year-ago levels, but hedge funds and other speculative investors have started turning slightly less bearish, and analysts say an unwind of those bearish bets can exacerbate bullish price moves such as the current one.
  • Natural gas names move higher: GPOR +18%, RRC +12.4%, AR +11.6%, SWN +10.4%, CHK +8.3%, EQT +6.3%, COG +2.4%.
  • ETFs: UNG, UGAZ, DGAZ, BOIL, GASL, FCG, KOLD, GASX, UNL, GAZB, GAZ

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