“Winter is over” say natural gas prices….

November 6, 2016 by Jim Colburn Leave a Comment

Natural Gas prices tumbled recently on seasonally warm weather:

Here is Bloomberg (http://www.bloomberg.com/news/articles/2016-11-04/gas-traders-are-giving-up-on-u-s-winter-before-it-s-begun :

“Autumn warmth has spooked the gas market, pushing prices to the biggest weekly drop since January on concern that a mild winter will leave the market struggling to absorb a glut of the heating fuel. A bad weather bet can have dire consequences for traders: A wrong-way wager on the March-April spread contributed to the collapse of hedge fund Amaranth Advisors in 2006.”

Here is the March-April chart:

Commodity Research Group (CRG), founded by veteran analyst Edward Meir, is an independent research consultancy specializing in base and precious metals, as well energy products. The Group provides research and general price analysis for these markets, along with advice to companies seeking to construct commodity hedging strategies.

Our associates bring decades of experience to the table, as they seek to help our clients understand the markets. CRG will distill the myriad of pricing variables mentioned above into coherent research that is to-the-point and tailored to a clients hedging or pricing needs. In addition, CRG is available for consulting assignments and speaking engagements. CRG does not manage money or trade for itself.

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