Natural Gas starting to draw more attention
Posted: Thu Sep 20, 2018 7:43 am
BMO Capital Markets 9-19-2018:
"Prompt natural gas rallied 11 cents today on the back of a call for extremely cold weather this winter heating season and the continued demand to fill storage now that has been expressed by strength in the cash markets. Spot gas at the Henry Hub was trading north of 3.00/mmbtu today as unseasonably warm weather continues to envelop the midwest and Northeast operators scramble to cover the storage deficit. Volatility was well bid throughout the Nov-Mar period on both straddle and outright call buying that ultimately drove implied vols higher by 1.50% today. As mentioned above, the WSI weather service released a Winter Season forecast that called for substantially colder weather than normal through the Dec-Feb period which rallied all the fear indicators in the market once more. Oct18/Nov18 sits at +.034 as cash is trading >3.00/mmbtu, Nov18/Mar19 rallied 5c today, and Feb19/Mar19 was +1.5c."
This is how it starts!
"Prompt natural gas rallied 11 cents today on the back of a call for extremely cold weather this winter heating season and the continued demand to fill storage now that has been expressed by strength in the cash markets. Spot gas at the Henry Hub was trading north of 3.00/mmbtu today as unseasonably warm weather continues to envelop the midwest and Northeast operators scramble to cover the storage deficit. Volatility was well bid throughout the Nov-Mar period on both straddle and outright call buying that ultimately drove implied vols higher by 1.50% today. As mentioned above, the WSI weather service released a Winter Season forecast that called for substantially colder weather than normal through the Dec-Feb period which rallied all the fear indicators in the market once more. Oct18/Nov18 sits at +.034 as cash is trading >3.00/mmbtu, Nov18/Mar19 rallied 5c today, and Feb19/Mar19 was +1.5c."
This is how it starts!