Natural Gas Collapses on Warming Forecasts for Late February

The Widowmaker Reversal

The 'widowmaker' spread (March/April) collapsed as traders exited long positions en masse. The sudden removal of heating degree days from the 15-day forecast has left the market oversupplied relative to immediate needs.

Production Recovery

With temperatures moderating, freeze-offs have resolved, allowing production to climb back above 105 Bcf/d. This supply rebound into a demand vacuum caused the price capitulation.