Blue Lacy Advisors, LLC – Traders Anticipating Summer Despite Waning Winter
Minneapolis, MN | January 31, 2023 | By: Steve Sinos, Blue Lacy Advisors, LLC
Summary
US natural gas producers can’t get a break! Weather forecasts had suggested seasonal to moderately below temps might offer a slight boost to prices in the coming weeks, but recent runs have those expectations moderating. Gas-weighted degree days should still rise over the next two weeks but probably only exceed the long-term normal by a day or two, accumulating insufficient excess demand to turn the end-of-season trend. February gas futures had dipped below $3.10 in Friday’s trade before set line at $3.17 for the week, which was the lowest price in more than a year. Shoulder months – March and April – trade near parity at $3.03/MMBtu. Winter 2023 at $4.27 trades at ~$1 premium to summer, the tightest spread in the last ten years.
*This summary is based off January 20, 2023
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Meet the Author!
Steve Sinos, Blue Lacy Advisors, LLC
Email: Sinos@bluelacyllc.com
Phone: +1-832-413-3124
Website: www.bluelacyllc.com
Steve has spent his career in strategy, risk, trading, and investment. He works with investors to source investments in opportunistic or high growth sectors, with particular interest in early-stage companies solving clearly defined problems.
He is currently a Managing Partner with Blue Lacy Advisors LLC, giving management teams and investors confidence in their decision making by supporting strategic planning and execution, risk management, commodity trading, and market analysis.
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