Prompt-month Henry Hub Natural Gas prices have traded up 30 cents in the last 2 days as cold weather looms next week.
And this comes on the heals of an already budding rally in Natural Gas.
There are two key charts to look at here for Natural Gas – Price and Weather (i.e. Demand).
Let’s look at price first.
Natural Gas prices are now just pennies away from levels not seen on the energy commodity since May of last year. The broader Natural Gas rally comes on the heals of a colder than usual weather streak from late December to early January.
And after a few days pause, it will get cold again soon.
Natural Gas Price Chart – Testing Resistance!
Natural Gas Demand & Weather Temps
The rally also comes on the heals of an all-time record Natural Gas withdrawal according to the EIA Storage report yesterday for the weekending January 5 – 359 Bcf!
The next 15 days are expected to see well above normal Natural gas demand, with national Heating Degree Days 27 above normal according to the latest European Ensembles weather model, with emphasis on next week for the bulk of the cold weather. (see HDD +27 pic).
Thanks for reading and have a great weekend.
Twitter: @MikeZaccardi
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
