- Nymex natural gas futures tumbled 17% today to settle at $4.038/MMBtu - just a day after surging 18% to a four-year high $4.837/MMBtu - in a bout of volatility suggesting technical forces outweighed fundamental factors such as supply and demand.
- Cold weather forecasts and low stockpiles had driven prices higher, then was exacerbated by a short squeeze as bearish traders were forced to close positions, but prices retreated today as some bet the surge was overdone, traders told WSJ.
- "With storage certain to be low throughout winter, expect volatility to remain elevated relative to normal," says Robbie Fraser, a global commodity analyst at Schneider Electric (PA:SCHN) Global Research.
- Drillinginfo analysts say the nat gas shake-up likely was linked to the recent plunge in oil, which has fallen more than 20% since early October.
- December WTI posted its second straight modest gain today after 12 straight losses, settling at $56.46/bbl after hitting $55.69/bbl earlier this week for the lowest front-month contract finish since November 2017.
- ETFs: USO, UNG, XLE, OIL, UGAZ, UWT, DGAZ, UCO, VDE, XOP, DWT, ERX, OIH, SCO, BNO, BOIL, GASL, FCG, DBO, ERY, DIG, BGR, GUSH, DTO, FENY, USL, IYE, DUG, KOLD, DRIP, IEO, FIF, UNL, GASX, DNO, NDP, PXE, OLO, RYE, PXJ, SZO, CRAK, DCNG, FXN, OLEM, WTIU, DDG, OILK, NANR, OILX, WTID, USOI, USOU, GAZB, USOD, FTXN, JHME, ERYY, ERGF, OILD, OILU, USAI
- Now read: A Bear On Crude Asks: Is A Crash Just Getting Going?
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