November’s cold weather triggered natural gas (futures) price spikes this month resulting in gains as much as 48% at its peak. Trading volume hit an all-time high of 1.2 million contracts on Wednesday, November 14th. All this action primarily due to short covering, lower than normal gas storage levels (-16.6% yr. ago, -18.6% 5-yr. avg.) and early onset of cold weather.

Take a look at NYMEX futures pricing.

Today’s weekly natural gas storage report revealed 134 BCF withdrawal compared with expected 113 withdrawal, a significant difference. Gas in storage is low and that won’t change going forward. Futures pricing initially spiked however pricing settled in negative territory. Forecasts calling for warmer weather beyond Thanksgiving Day and Friday is stopping any new price rally, thankfully.

As I’ve said repeatedly, you need to be locked in this winter and beyond, time is now. Any period of sustained cold weather will create havoc and price spikes. Look at what’s happening this month.

Hard to believe Thanksgiving is here. I am thankful for the life and blessings God has given me and in no way am I deserving of His ongoing goodness. And I’m thankful to be living in the United States. My parents gave me a life attainable only in the USA.

Wishing all of you a Happy Thanksgiving!

John Thomas, President
Upstate Utilities, Inc.