“This looks like a capitulation move today, but if cold weather really takes off, the skies the limit,” Meisel added.
On the supply side, Government data last week revealed the amount of natural gas in U.S. storage facilities rose by 65 billion cubic feet to 3.208 trillion cubic feet, or what is 15% below the year-over-year level and 16% below the five-year average. The storage numbers were also the lowest amount for the first week of November since 2003.
“It looks like more of a short squeeze than anything else. There’s more cold weather on the horizon. A couple of the weather forecasts strengthened,” John Kilduff, partner with Again Capital, told CNBC. “Any kind of cold weather blast early season like this is going to cause anxiety and concerns about really tight supply as we get deeper into the winter.”
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