Weather Data Gains Some Demand Back

Written by on February 26, 2020 in NatGasWeather - No comments

Wednesday, February 26: March’20 nat gas prices closed slightly higher Tuesday with expiration at today’s close. The overnight weather data trended further milder for late this week and this weekend with less impressive amounts of cold air into the northern and eastern US, while also exiting a day faster. However, the data continued to trend colder with a weather system across the northern US March 5-8th, especially in the overnight European model. Essentially, a redistribution of HDD’s with demand being lost for the first week on milder trends but being gained next week on colder trends across the northern US. Overall, the weather data is a little colder compared to the start of the week. Today’s trade will be of interest since the weather data added back several HDD’s over the past 24-hours, especially in the overnight European model for the March 5-10th period and could be reason if prices were to gain. The supply/demand balance remains much tighter the past month, so any colder trends will certainly be welcomed if they are able to hold.

Colder air will sweppa cross the country the next few days wit hlows of -0s to 30s for a surge in national demand, although not quite as cold as the data had once shown.


 

A mild pattern is forecast to return March 2-5 across most of the US besides the very far north for a swing back to lighter national demand and where the pattern isn’t cold enough.


 

A colder trending weather system is expected across the northern US March 6-8 to gain back numerous HDD’s since the start of the week.


 

The overnight European model was milder for this weekend, but colder March 5-10, overall gaining back 10 HDD’s the past 24-hours.

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