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Frigid weather was forecast to drive a sharp rise in US heating demand over the coming weeks. The gas storage surplus could narrow by triple digits in Bcf, and prompt futures were up about 42 cents on the year.
A faster drawdown of the storage surplus shifts the balance of winter supply and supports higher gas prices.
spglobal.comJan 8, 2024After 221 past bullish weather events, Natural Gas moved a median +3.3% over 5 sessions (61% higher; middle half -5.2% to +14.0%), and -0.3% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Forecasts of frigid weather and a narrowing storage surplus raised demand expectations just before the move, which supported the bullish sentiment.
