Contracts extend the upward streak! 🚨
In today’s session, natural gas contracts are up by 10%. From the local minimum, the price has increased by over 25% in 3 days.
An upward correction could have been expected for several weeks. Contract valuations did not account for the disparity between weather forecasts and the levels of export, production, and inventory.
However, at the beginning of this week, valuations were shaken by the appearance of a “polar vortex” over the Midwest USA, where most of the demand for natural gas in the USA originates. Temperatures plummeted, demand increased significantly, and contract prices had to catch up quickly.
NATGAS (D1)
Source: xStation5
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