Does weather cause Natural Gas prices to run-up?
Sure it does,
If you look at the chart history you can see a distinct pattern in more violent hurricane seasons compared to less violent hurricane seasons. Price run-ups were much more favorable with more violent hurricanes seasons.
no greedy gas company
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Yes, the hotter or colder it is, the more NG is used for power generation. With a limited supply of NG, this causes the price to go up as different companies and countries compete for the available supply
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Winter causes more of a draw, and most likely a rise.
Futures contracts even this out.
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Sure it does,
If you look at the chart history you can see a distinct pattern in more violent hurricane seasons compared to less violent hurricane seasons. Price run-ups were much more favorable with more violent hurricanes seasons.
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Sure, very cold winters increase demand of ng.
In the short run, supply can’t keep up – so market equilibrium price is high (has a run-up).
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