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Commodities’ Dizzying Week Amid Fed, Nor’Easter in Five Charts

  • Natural gas posts biggest weekly advance since August 2020
  • Oil rallies for sixth week, longest winning run since October
LNG Carrier Ship Arrives at Jera Thermal Power Station
Photographer: Kiyoshi Ota/Bloomberg

Just like stocks and bonds, commodities markets had their share of gyrations this past week as geopolitical tensions over Ukraine and Russia, a more hawkish turn by the Federal Reserve and the promise of a powerful snowstorm in the U.S. rattled traders. Here are some of the most notable moves across commodities this week. 

Natural gas futures for March delivery climbed 8.3% on Friday to close at $4.639 per million British thermal units as a so-called “bomb cyclone” approached the East Coast. The increase followed a historic advance of as much as 72% in the expiring February contract on Thursday, a sign of a classic short squeeze as traders exposed to wrong-way bets on lower prices rushed to close out those positions. For the five-day period, futures surged 16%, the biggest weekly advance since August 2020.