Natural Gas Hits Five-week Lows – Put Options Suggested As Warmer Weather Curtails Demand
Oct, 24th 16:11
U.S. natural gas futures dropped to the lowest level since September 09th at $2.851 per million Btu on Monday. The slide was due to forecasts that the weather will be warmer than usual across the US this fall and winter.
According to the Weather Company, temperatures in the U.S will probably be above normal in the central part of the U.S. from Oct. 29 through Nov. 7, which has spurred concerns that a mild winter will lessen demand for the heating fuel.
Weather forecasts also reported that except for the Southeast, most parts of the U.S will experience warmer than usual weather in November and the situation may last through January. Although demand for natural gas from power plants is rising, stockpiles are above normal and a mild winter is expected to worsen the glut.
Natural Gas Trade suggestion
Buy Digital Put Option from 2.870 to 2.840 valid until 20:00 GMT October 24, 2016