MCX Natural Gas November futures soared to 19% after the US weather forecasts called for an increasingly cold winter in December which raises concerns that fuel supplies may not be adequate to meet seasonal demand. Natural gas is soaring, during the month of Nov 2018 alone Natural Gas futures up by a whopping 43%.
The rise in Natural Gas price reflects worries that winter heating demand may draw heavily on stocks of US gas in storage that now sit at 3.2tn cubic feet, the lowest in more than a decade for this time of year.
The volatility in Natural gas soared to an extreme. And the volatility is expected to be higher for some more days. Nautral Gas hourly sentiment is at the extreme so price sustainability at these higher levels raises lot of concerns.