Is there a bull in our future?
November 09, 2017
According to the latest CFTC Commitment of Traders report, producers, merchants and end users are a bit more bullish this year on natural gas versus last year as we enter the Nov-March winter period. This class of trader is net long 41% compared to 39% in 2016. The total net long positions equate to 747 bcf versus 1020 bcf for options and futures combined.* The move is supported by predictions of a winter that may be colder than last year across the Northern Tier of the US thanks to a 65% chance of La Nina (NOAA).
*Henry Hub Swap. NYMEX Natural Gas Swap, and Henry Hub Penultimate contracts