‘Widowmaker’ Natural Gas Spread Doubles as Traders Eye Winter
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A natural gas trade known as the widowmaker because of its volatility is once again in focus amid concerns about the level of U.S. inventories as the country get closer to winter.
The spread between March and April futures -- essentially a bet on how tight supplies of the fuel will be at end of North American winter -- jumped to a new high, rising 18% at 2:57 p.m. in New York. In other words, buying drove March futures way above gas for delivery the following month.