Natgas Plunges 10% On “Extremely Bearish” Warmer January Forecast
Natural gas futures are down more than 10% on Monday morning following new weather models that suggest warmer weather is ahead.
Meteorologists at BAMWX show one model that suggests temperature anomalies for much of the country could be well above average for early January.
For the next two weeks, heating degree days for US-Lower 48 will be below trend, suggesting warmer temperatures and a decline in energy use to heat homes.
“I suspect, however, the forecast for January came out extremely bearish over the weekend, triggering the gap opening, but we’ll learn more about that on Monday. The big takeaway this week is likely to be that next week’s government report is going to show an average draw. Remember that professionals look at least two weeks ahead,” said FX Empire.
Mon, 12/28/2020 – 12:25