Natural Gas Finally Rebounds With Colder Risks And Tighter Balances

The March natural gas contract rebounded a couple percent today as weather models began adding back demand and weather-adjusted demand continued to impress. 

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natural gas commodity weather

It was the March contract that was again strongest on the day, with firm cash prices helping it lead throughout. 

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natural gas commodity weather

The result is two straight days with the March/April spread bouncing. 

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natural gas commodity weather

In our Morning Update, our sentiment turned back Slightly Bullish on overnight GWDD additions and tighter balances at these lower price levels. 

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natural gas commodity weather

natural gas commodity weather

We specifically highlighted to that afternoon 12z model guidance should trend even colder to support prices and that Week 3 forecast risks were more supportive. 

natural gas commodity weather

LNG exports came back this week as well, helping to tighten up balances. We track these daily for clients in our Note of the Day. 

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natural gas commodity weather

 

Disclaimer: To begin receiving both our technical and fundamental analysis of the natural gas market on a daily basis, and view our various models breaking down weather by natural gas demand ...

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