Nat Gas Prices Plunge As “December Could End Top 3 Warmest All Time”

Nat gas futures plunged Monday morning on new weather models suggesting “December could end top 3 warmest all time,” according to weather forecasters BAMWX. 

“BAMWXWeek 3/4 forecast guidance via the CFS/GEFS suggesting December could end top 3 warmest all time. Similar cases in years past go on to suggest Winters run incredibly warm. Our top analogs going forward would favor a top 5 warmest winter on record scenario.”

Nat gas futures are getting clobbered, down more than 6% to around $2.42.

“It’s hard to look at a near-term temperature forecast such as this & NOT be surprised when #natgas gaps down 7%. All of the bullish catalysts—record LNG exports, stalled production, strengthening powerburn, tight S/D imbalance—are ignored, for right or wrong, in this environment,” one energy trader said. 

It’s hard to look at a near-term temperature forecast such as this & NOT be surprised when #natgas gaps down 7%. All of the bullish catalysts—record LNG exports, stalled production, strengthening powerburn, tight S/D imbalance—are ignored, for right or wrong, in this environment. pic.twitter.com/pAALavWcFW

— Celsius Energy (@CelsiusEnergyFM) December 7, 2020

 Blame the abnormally warm weather on La Nina?