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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


A free excerpt, such as this one, will be published on a delay periodically. This is an excerpt from Blue Lacy Advisors, LLC's (“Blue Lacy”) weekly commentary for clients, which is based on a collection of models, research/analytical subscriptions, and bespoke work. Each week Blue Lacy explores how market drivers included in these analyses might affect or be used in clients' planning, budgeting, and execution of strategy. Call Blue Lacy to make an appointment today!



 

Meet the Author!


Phone: +1-832-413-3124


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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