Natural Gas's Multiyear Rise Might Not Be Stoppable

Natural Gas's Multiyear Rise Might Not Be Stoppable

In the trailing week, natural gas December futures rose 15.4%. According to Reuters, for the next two weeks, Refinitiv analysts have increased the total degree days to 380 on November 13 from 371 on November 12 in the Lower 48 US states. The increase might result in higher natural gas use for heating than previously expected. The total degree days are also higher than the 30-year average of 302 for these weeks.

https://marketrealist.com/2018/11/natural-gass-multiyear-rise-might-not-be-stoppable

 

Black Blade: Natty has been on a tear lately. But I have seen this story play out many times over the years. High (or higher) prices lead to a rush (boom cycle) and a quick surge of over production and massive build in inventories, and then comes the crash (bust). Same old story over and over. We may see a couple good years on natty tho. It has been left behind the last few years and it does take time to frack and bring on new wells (including completed wells).

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