by Mike Eilts, on Nov 13, 2015 11:43:20 AM
Anomalously cold weather is likely to arrive in the West and Central Plains in the next few weeks. Most of us are not ready for it because it has been a warm fall thus far. Natural Gas prices are priced as if it is going to stay warm too…
WDT’s long range forecast experts, Ed Berry and Dr. David Gold, along with our partner Andy Weissman, launched a Special Alert to our customers yesterday stating that cold weather is coming.
Here is that SPECIAL ALERT.
- The chances of a cold shot through the middle of the country have been developing throughout the day; see Weather Decision Technologies’ newest forecast, below
- With the natural gas market struggling to find direction, this could be particularly significant for the winter-month contracts
- Any cold development, even if short in duration, would be a significant departure from current market expectations
- Given the record number of net shorts, the front-month contract could rise sharply from currently depressed levels
- Tomorrow’s issue of Andy Weissman’s Energy Flash Report will provide further updates and analysis
A follow-up Energy Flash Report was sent to our customers this morning indicating, much colder temperatures over the next 3 weeks resulting in potentially higher natural gas prices. Natural gas prices are already moving this morning!
