Natural Gas Prices Crash Twenty Six Percent on Warming Weather Forecast

The Widowmaker Trade

The volatility in natural gas has lived up to its reputation. Traders who bought the 'Arctic blast' narrative earlier in the week were forced to liquidate positions as the forecast moderated, triggering a cascade of sell orders.

Storage Reality

With the deep freeze threat diminished, the market is refocusing on the high storage levels. Inventories remain well above the five-year average, leaving little fundamental justification for prices above $4.00 in a mild winter scenario.