Liam Denning, Columnist

Winter Wonderland Is a Last-Minute Gift for ‘Natty’ Bulls

Next year likely won’t be so giving, with gas demand forecast to fall and indexes rebalancing their baskets.

December 15, 2022 at 12:23 PM UTC

Liam Denning is a Bloomberg Opinion columnist covering energy. A former banker, he edited the Wall Street Journal’s Heard on the Street column and wrote the Financial Times’s Lex column.

Snow blankets Regent's Park in London this week. — Snow blankets Regent's Park in London this week.
Photographer: Chris J. Ratcliffe/Bloomberg

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Hello and welcome to Elements, our daily energy and commodities newsletter. Today, Bloomberg Opinion’s Liam Denning says natural-gas bulls should appreciate this last-minute cold blast because 2023 likely won’t be as good. To learn more about why the European Union and US are clashing over green subsidies, read this. If you haven’t yet signed up to get Elements directly into your inbox, you can do that here.

This week saw the first winter flurries here in New York, which always puts natural-gas bulls in a festive mood. Benchmark Henry Hub futures are up 13% in the past week to almost $6.50 per million BTU. For the really crazy prices, though, try the far-flung corners of the network. Gas commands $27 at New England’s Algonquin hub and $40-$50 across California, which just endured a big snowstorm. Its legacy is due to hit the East Coast on Thursday.