It was a spooky Halloween for natural gas bears as the December natural gas contract shot up over 2% and continued running after the settle on significantly colder afternoon weather model runs.
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These bullish weather forecasts sent the December/January Z/F contract spread to new narrow levels.
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This came after firmer cash prices initially spiked the front of the strip higher this morning as well.
This morning we saw many of these Week 2 cold risks that intensified overnight but appeared to die off into early Week 3. Though that trend held in afternoon model guidance, cold earlier in Week 2 was seen being even more intense.
The result was a forecast with solidly more cold risks for the 8-14 Day time period per the Climate Prediction Center.
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