Weather forecasts drive bullishness in Henry Hub futures, cash markets

摘要

NYMEX front-month natural gas futures surged to their highest level in more than seven months on Monday as US weather forecasts now point increasingly toward unseasonably cold temperatures in November. With balance-of-month heating demand likely to outperform, prompt prices were seen rising into the mid-$2.80s/MMBtu during early trading, data from Intercontinental Exchange showed. In the cash market, benchmark Henry Hub gas jumped nearly 25 cents Monday to $2.74/MMBtu – the highest spot market price since mid-September, according to preliminary data from S&P Global Platts. Bullish price movements in US gas futures, forwards and cash markets come as meteorologists become more certain that a recent influx of colder weather will stick around over the medium term.