Natural Gas Jumps As Heating Demand Gets An Early Start

Note to Substack Readers: We are currently in the process of automating our twice-daily weather update system onto the Substack chat. We hope to have this up and running before the start of winter gas trading.

Natural gas prices are getting a nice lift today following the recent weather updates showing an early start to heating demand.

According to the latest ECMWF-EPS update, the Northeast should see colder than normal weather in the 6-10 day range. This is expected to spike heating demand.

But the cold front will only be temporary with heating degree days falling below the seasonal norm by the 10-15 day period.

In our view, the only way for prices to sustainably move higher is for colder-than-normal weather to persist. More importantly, we need a major cold event this winter to shock storage lower.