Here is what’s been going on in natural gas (the lower chart is implied volatility):
Tom DiChristopher at CNBC has a nice piece explaining why, here:
”On the one hand, U.S. natural gas production is rising at a record-breaking pace of about 9 billion cubic feet per day. But gas demand for power generation is also at a record. Three new U.S. liquefied natural gas export facilities are scheduled to open through the first quarter of 2019, gas-consuming industrial projects are coming online and new connections are slated to deliver U.S. supplies to Mexican power plants.
“These offsetting factors point to a gas market that will balance on a knife’s edge this winter, with little spare room on either side,” according to Cohen.”
(The chart is from Barchart.com…)