Like in most winters, pure fuel costs began receiving heat from the chills this yr. Usually, the Ar
Like in most winters, pure fuel costs began receiving heat from the chills this yr. Usually, the Arctic blast of chilly air offers life to this commodity each winter. The chilly snap boosts electrical energy demand throughout the area, placing concentrate on pure fuel.
This yr as nicely, forecasts of colder-than-expected temperatures in the US may drive pure fuel costs. Per Zerohedge.com, “an Arctic blast of cold air is likely to roll into the Mid-Atlantic and Northeast regions this coming week, presumably producing one of many first snowmaking climate occasions of the yr by late week.”
Already, pure fuel costs have scaled to the highest level since March. Notably, pure fuel costs have suffered this yr with United States Pure Gasoline Fund LP UNG shedding 9.1% within the year-to-date body. The fund misplaced 23% previously yr (as of Nov 4, 2019).
Hedge funds and different speculative traders, who beforehand had a bearish name on pure fuel, have now began taking curiosity within the commodity. Thus, analysts are of the opinion {that a} current reversal of these bearish bets can drive bullish…