(UNG) (BOIL) (KOLD) (NGG25) (TGG25) (NFG25) 

“What’s causing incredible natural gas market volatility & Is a second Polar Vortex coming?”

by Jim Roemer - Meteorologist - Commodity Trading Advisor - Principal, Best Weather Inc. & Climate Predict - Publisher, Weather Wealth Newsletter

• Monday Evening Report - January 6, 2025

Here is an excerpt from my recent WeatherWealth newsletter about the natural gas market. The trading strategies are reserved for clients.

Last Thursday, I suggested that the EIA (delayed until Friday due to the holiday) would be bearish and that these factors below would continue to cause incredible market volatility.

Why is natural gas so incredibly volatile and difficult to trade? 

• 1) Warmer forecasts that well-heads in the Gulf may be spared  major freeze damage.

• 2) Warm European weather to prevent major imports of LNG

• 3) My comments last Wednesday that the EIA should be bearish on Friday (which it was)and that natural gas stocks were too high to justify $4 prices unless the wells freeze

• 4) Polar Vortex already built into the market, unless there are two to three behind it. For now, there are not. Too many specs bought the rally. However, could February also be cold?

Below we see weather models for the last 10 days of January on the left and upcoming snows the next 2 weeks that supported natural gas prices again on Monday. Will this cold extend into February? If so, the lows are in for natural gas prices again. What are we looking at?

A) A major stratospheric warming event west of the Arctic; 

B) The MJO going into phase 1/2; 

C) A La Niña Modoki. 

All three of these climatological factors should portend more cold weather. So… how does one take advantage of the incredible volatility in the energy markets?

Request a two-week free trial to WeatherWealth, and you will find ETF, futures and option ideas in the natural gas market, based on the weather, and get “a heads up” and a huge advantage over other traders with frequent, more detailed, accurate weather updates for the most highly affected energy commodities, and much more, here: 

https://www.bestweatherinc.com/membership-sign-up/

Editor's Comment: For over 30 years Mr. Roemer has been applying the impact of key meteorological phenomena to the financial behavior of energy commodity markets… this one, featuring the Polar Vortex, is a crown jewel. We hope you wear it well. 

T H A N K S    F O R    Y O U R    I N T E R E S T    I N    C O M M O D I T Y    W E A T H E R  !!!

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