A warm start to winter could only delay the bullish narrative on natural gas and not cancel it, believes one Barclays analyst. In his November 9 research note titled “Gas and Power Kaleidoscope,” Nicholas Potter recommends buying Calendar 2017 on dips.
Short-term weakness won’t hinder bullish view on natural gas
Tracing recent natural gas price trends, Potter points out that after a heady run-up in prices for most of the third quarter, the exuberance over natural gas prices has hit the front and back ends of the curve. He notes that Calendar 2017 is trading at $2.94/MMBtu, dropping from last month’s high of $3.42/MMBtu.
He suggests that gas bulls embrace the theme “a watched thermometer never falls” and attribute the recent weakness...
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