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U.S. natural gas futures fell 7.8% to $3.53/mmBtu after a forecast of warmer-than-normal weather for December 22-26. Prices have dropped 21% since December 10 and about 28% from the November spike.
A hedge fund that sold naked options was liquidated after the November spike.
Milder weather forecasts reduce near-term heating demand and pull gas prices lower, which eases energy costs for feed and grain processors.
wolfstreet.comDec 17, 2018After 104 past bearish weather events, Natural Gas moved a median -7.8% over 5 sessions (22% higher; middle half -14.8% to -0.8%), and -3.3% 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.
