It was a spooky Halloween for natural gas bears as the December natural gas contract shot up over 2% and continued running after the settle on significantly colder afternoon weather model runs.
These bullish weather forecasts sent the December/January Z/F contract spread to new narrow levels.
This came after firmer cash prices initially spiked the front of the strip higher this morning as well.
This morning we saw many of these Week 2 cold risks that intensified overnight but appeared to die off into early Week 3. Though that trend held in afternoon model guidance, cold earlier in Week 2 was seen being even more intense.
The result was a forecast with solidly more cold risks for the 8-14 Day time period per the Climate Prediction Center.
