March Gas Spikes On Early March Cold And Strong Cash Into Options Expiry

The March natural gas contract shot over 4% higher on the day today as cash prices traded over $2.85 and afternoon model guidance trended even colder for the first third of March. 

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natural gas commodity weather

The role of cash and the March options expiry was apparent in how much more the March contract ran out relative to the rest of the futures strip. 

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natural gas commodity weather

The result was a flip positive in the March/April H/J spread. 

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natural gas commodity weather

Our Morning Update highlighted a significant cold trend over the weekend that let prices gap up last evening. 

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natural gas commodity weather

Afternoon model guidance trended even colder in the medium-range too, helping prices run up into the settle (images courtesy of Tropical Tidbits). 

natural gas commodity weather

This verified well, as prices shot higher today. Part of this has been due to continued tight balances, with LNG exports at record levels playing a role. 

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natural gas commodity weather

 

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