• It's Here!

    Etf Pro

    Get the big financial market moves right, bullish or bearish with Hedgeye’s ETF Pro.

  • It's Here

    MARKET EDGES

    Identify global risks and opportunities with essential macro intel using Hedgeye’s Market Edges.

Game of Thrones references aside, winter IS on its way here and we could  see a normal winter - the kind with snow - bring gas back to $4.00-$4.50/Mcf. Natural gas prices are highly dependent on what kind of winter we have going forward and if we have a warm one like we did in New York last year, expect natgas prices to fall further.

Currently, inventories are 9% above “normal” (we used the 2006 – 2010 average); the chart below makes a compelling argument for $4.00 - $4.50/gas should we get a normal/colder winter and inventories continue to decline to a “normal level.”  That would imply upside the winter strip, which is sub-$4.00.

Energy: Winter Is Coming  - 1