Natural Gas Futures Poised to Move Higher: Harry

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Dec. 13 (Bloomberg) -- Bloomberg's Scarlet Fu and Alan Harry, CEO at Spartan Commodity put natural gas futures in focus in "On The Markets" on Bloomberg Television's "In The Loop."

Spartan commodity fund.

He is joining us from the nymex.

Good to see you.

This is all the weather.

It is freezing here in the forecast is suggesting a moderation next week.

Yes, right.

Very cold weather.

If we do not see more cold weather, we could see lower levels.

I'm really focusing on the 440 level for natural gas.

If we settle above it, the higher we go.

, tire we talking about?

492 for natural gas.

We're talking about a lot more cold weather.

I would expect the market to come off a lot harder, which it did not.

We think there are a lot of longs in that market.

They're waiting for it to go higher.

We keep seeing natural gas bump up against the 440 level.

That is where we were earlier this year.

What would it take to get back to the levels of 2008. first, exceedingly cold weather.

It would also have to be something with the infrastructure.

Big bottlenecks within the infrastructure to get to that level.

Talk about the supply situation.

There is a tremendous amount of supply.

We have supply coming from other regions that we used to never have, like in the north.

We do have enough supply and natural gas.

However, if we get a big cold snap and we get the natural gas from where it is stored out to the places that need it, that is the infrastructure issue.

If we created and we have an infrastructure issue, we could see much higher levels.

I do not think it will happen, but if it did, that would take us to higher levels.

Weather is the catalyst.

There are a lot of events on the calendar as well.

The policy meeting is next wednesday.

They will have a decision on interest rates and quantitative easing.

Do you expect these macro events to cause a fluctuation and natural gas prices at all or is that a sideshow?] in this particular case, i do not think it will have much of an impact.

It could affect the war local market.

I do not think it will have much impact this time around.

It is really whether driven.

If we have a cold snap, we see higher levels.

If we have warm weather, we are coming off hard.

The macro aspect will not have much impact.

What about the effect on heating oil versus natural gas?

Parts of the country still depend on heating oil versus natural gas.

Very interesting play there.

We have natural gas going up and heating oil is not going with it.

It has been on its own.

What i look at instead is that there has been a decline in crude oil.

That allows us to have all of the heating oil that we need.

It is very difficult to switch over to heating oil to natural gas in midwinter.

Thank you so much.

Alan harry.

He is joining us on futures and focus.

You're onon the markets again in 30 minutes.

"market makers" is up next.

This text has been automatically generated. It may not be 100% accurate.


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