The Sun’s output cycle has been well documented over the years. Researchers have found that the Sun cycles between an active (lots of sunspots) and inactive (few sunspots) states. In recent years, researchers began to analyze these cycles in relationship to the earth’s climate and temperature. Their empirically supported conclusions are likely to surprise many.
The natural gas market is highly influenced by climate-driven energy demands. A minor reduction in seasonal temperatures, driven by reduced solar output, will increase weather-related demand while overall demand continues to grow over the course of decades. Persistent inflows since 2010 could be capital adapting while the public resides in yesterday's paradigm.
Natural Gas and the Commercial Traders COT Futures and Options ZScore Weighted Average of Net Long As A % of Open Interest:
Headline: US GAS: Futures Retreat Despite Cold Weather Forecasts
Natural gas futures slid Monday after hitting five-month highs as traders cashed out of the market to profit from its recent advance, despite continued forecasts for cold weather in the coming weeks.
Natural gas for February delivery settled 15.6 cents lower, or 3.3%, at $4.580 a million British thermal units on the New York Mercantile Exchange.
Natural gas prices climbed by 5.7% last week, rising for three consecutive sessions as meteorologists said the frigid weather seen this month in much of the eastern U.S. will likely stretch into February, extending winter's chill and increasing demand for the heating fuel.
But some traders were likely cashing out Monday to profit from the market's strength, analysts said.
"We could see a pullback here," said Kyle Cooper, director of research at IAF Advisors in Houston. "As long as it stays cold, it's probably not coming down significantly."
Source: online.wsj.com
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