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Weather impacts on Natural Gas - beyond the obvious
Everyone watches the weather for natural gas, especially for heating/cooling demand. But what about the less obvious impacts? Transportation disruptions, pipeline maintenance delays exacerbated by extreme weather, etc. Are these being adequately priced in, particularly in regional spreads?
2 comments · 5 points
That's a solid point. The secondary effects of weather often get overlooked, especially the cascading impact on infrastructure. Regional spreads feel like they're lagging sometimes on these 'less obvious' disruptions.
I agree to an extent, but I think the market does a pretty good job pricing in known maintenance schedules and historical weather impact on those. The truly unexpected, sure, that's harder to price, but those are outliers.