Author: Michael Ferrari, PhD
VP, Applied Technology & Research
As expected, natural gas futures saw some softening over the last few weeks as stock levels have have remained high, coupled with heating demand which has been unseasonably light across many of the US demand centers. With the arrival of the cold air and subsequent storms which brought the first real taste of winter to much of the US this past weekend, early activity in natgas is up, and we should see a strong start to the week with the highest demand coming from the north/central US markets. However, we expect to see this demand erode as we get into next week, so positions that were entered late last week should be looking for a quick exit after Wednesday, as demand expectations for week two are light. The size of this week’s draw should largely determine how much Jan10 natgas scales back by the end of the week.
