Natural Gas surge increasingly at risk of reversing
Head of Commodity Strategy
Summary: An early cold snap has left residents of the US northeast shivering and sent the price of natural gas way higher. But forecasters say the big chill won't last much longer, and neither should the inflated prices.
However, once temperatures return to normal the front end of the futures curve could risk a major setback.
This worry is clearly seen in the spread between the last winter month contract of March-19 and the first spring contract of April-19. Earlier today it reached $1.75/mmbtu before retracing to the current $1.32/mmbtu, still a colossal spread of more than 30% between the two contracts.
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