Gas Traders Haven’t Been So Bullish on Winter Since Polar Vortex
- March-April futures spread is highest seasonally since 2014
- U.S. supplies must fall below 900 bcf to justify prices: BNEF
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Natural gas traders are betting on the frostiest U.S. winter since the “polar vortex” pummeled the U.S. in 2014 and sent prices for the heating fuel to a five-year high.
Gas for delivery next March is trading at the highest seasonal premium to April futures since record cold swept across the U.S. nearly three years ago. The spread, known as “the widow maker” for its extreme volatility, signals that traders anticipate plunging temperatures will boost gas consumption, leaving stockpiles well below normal levels, according to Bloomberg New Energy Finance.