natural gas

natural gas

Friday, November 7, 2014

Winter 14-15 and Summer 15 Natural Gas Spread Widening


Much of the recent strength in the market has been in the winter 14-15 contracts rather than the longer dated contracts.

The winter 14-15 (December 14-March 15) and summer 15 (April 15-October 15) spread chart shows the rapid increase in the winter versus summer prices in recent trade.

The price difference between the winter 14-15  and summer 15 strips has increased from .142 (winter trading above summer) on October 27th to a current price of .582.

The spread also broke out to the upside above long term trend line resistance which is a bullish technical indicator.

The weekly chart shows the former trend line support which was broken yesterday as resistance.
 

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