Reply To: Into The Vortex – Natural Gas Outlook in The Shoulder Season


EBW Analytics Group observed a 33 Bcf day/day decline in weather-driven demand expectations for the Dec. 30-Jan. 5 storage period based on the latest forecasts.

“The ability of the market to see past the coming cold blast is central to the precipitous price decline,” EBW analyst Eli Rubin said. “Since Friday, the first week of January has transitioned from risks of extended, havoc-wreaking cold to a very balmy outlook” that would result in a sizable week/week drop-off in natural gas demand.

Still, even as “seasonal risks have vastly diminished, the potential for profit-taking by shorts ahead of a still-substantial cold blast poses upside price risks ahead of the Christmas holiday weekend,” Rubin added.