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.
