Investing.com UK - Financial Markets Worldwide
Get 40% Off
Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Natural gas down 6%, correcting as potential polar vortex dawns

AuthorBarani Krishnan
Published 14/12/2022, 18:56
© Reuters.


By Barani Krishnan

Investing.com -- The first likely polar vortex in four years might be just a week away, but natural gas still returned to a sell-off mode on Wednesday with players taking profit and attempting to correct a market that had jumped almost 30% over the past five sessions.

Natural gas for January delivery on the New York Mercantile Exchange’s Henry Hub was down 42.2 cents, or 6.1%, to trade at $6.51 per metric million British thermal units by 13:30 ET (18:30 GMT).

The benchmark gas contract had gone from a six-week low of $5.34 on Dec. 6 to a two-week high of $7.10 on Dec. 13, triggering the profit-taking and correction.

“With only a little over a week to go before a massive Polar vortex plunges into the U.S. and overspreads most of the nation with bitter cold, ice, and snow; NYMEX front-month gas futures are selling off this morning with prices oscillating in the $6.50s/mmBtu,” Houston-based energy consultancy Gelber & Associates said in a note on natural gas.

Gelber noted that January gas rose 34.8 cents to close Tuesday’s session at $6.935. “While that was a hefty gain, it was clear there was a force fighting for prices not to climb above $7.11/mmBtu,” it added.

Traders said Wednesday’s market reversal was notable because the oncoming Arctic winter blast was likely to be the coldest for a December since 2010.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.