ANALYSIS: Weather forecasts, supply gains pose risk to rally in Northeast winter gas prices
As the US Northeast digs out from its first major winter storm, a bullish runup in first-quarter 2021 gas prices there is looking overdone now with weather forecasts and supply gains posing a risk to the rally.
Over the past week, freezing temperatures, ice and heavy snow have blanketed the Northeast, fueling a rise in the cash and forwards markets as regional gas demand climbed to its highest since last winter.
At Appalachia’s benchmark supply hub, Dominion South, the Q1 forward curve has gained 33 cents since Dec. 8, most recently settling at $2.08/MMBtu, S&P Global Platts M2MS data shows.