Goldman Links Abrupt U.S. Natural Gas Spike to Tight Liquidity
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That unprecedented rally that sent U.S. natural gas futures surging as much as 72% Thursday probably was driven by tight liquidity rather than supply-and-demand considerations, according to Goldman Sachs Group Inc.
A colder shift in weather forecasts almost a year after a record winter storm may have constrained liquidity at a time when traders were seeking to cover bearish bets, Goldman analysts including Samantha Dart said in a note to clients on Friday.