Warm Autumn Diminishes Heating Demand, Rising Storage Worsens Gas Market
Oct, 21st 06:20
Natural gas prices has fallen for five out of the last six trading days, as unusual warm weather in October and swelling stockpiles continued to depress the market. The commodity extended its losses, hitting a two-week low at $3.078 per million Btu on Friday.
The U.S. Energy Information Administration on Thursday said natural gas stockpiles grew by 77 billion cubic feet last week, which was higher than expectations for an increase of 73 bcf.
Adding to natural gas’s woes, warmer-than-normal autumn this year has set a mild start to the heating season. Weather forecast indicates warm temperatures will last until November. Hence, heating demand for natural gas may continue to slide in the coming weeks.
Natural gas Trade suggestion
Buy Digital Put Option from 3.100 to 3.080 valid until 20:00 October 21, 2016