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On this graphic, I examine normalized Henry Hub each day spot costs with ECMWF 00Z CONUS pure gas-weighted HDD forecast anomalies for November to March over 2017 to 2025. I.e., it is a historical past of forecasts really accessible on every date. It’s fascinating that Henry Hub spot costs don’t reply equally throughout the forecast horizon. Every panel reveals the connection between the current-day Henry Hub worth and the HDD anomaly for a particular forecast lead time. On this pattern, the connection is strongest across the day 3 forecast time horizon. Costs usually agency forward of colder-than-normal forecasts and soften forward of warmer-than-normal forecasts, however that sensitivity will not be uniform by lead time. The market is inherently factoring within the climate forecast accuracy into its buying and selling. Talk about! https://preview.redd.it/mu8m6gpqmlpg1.png?width=6000&format=png&auto=webp&s=1fa463c9a51d44a987176c75124262c29f2174bb submitted by /u/jfd118 |


