Markets broke through the $4.60 USD/MMBtu barrier and returned to three-year highs today. The NYMEX front month rose $0.11 USD/MMBtu or 2.5% to settled at $4.65 USD/MMBtu. With the EIA storage report delayed till tomorrow (due to Veterans Day), the market remained driven by weather forecasts.

Although the 6–15-day forecast showed a warming pattern, traders are focused on December when weather can become seriously cold. Preliminary forecasts for the month show a high likelihood of cold, concentrated in the Rockies and Midwest. Warm air blocking over the arctic circle is pushing a cold trough southbound with the risk of trapping it there for several weeks. (PB)

Source: Climate Impact Company