After initially showing deep cold throughout most of the United States in early February, the latest GFS models have changed to show less cold and more above average temperatures.
Natural gas futures reacted to the adjusted weather forecasts on Sunday evening, gapping down almost 4% to $2.89 at the 6:00pm EST open.
While cold does still persist along the eastern seaboard, the midwest and Texas, which were previously plagued by the same cold in previous GFS models, have now turned to above average temperatures.
Traders and investors of natural gas will look to a developing storm in the northeast where large accumulations of snow are expected to pound to New York and Boston on Monday and Tuesday.
The GFS 2m Temperature Anomaly is computed using a 30 year climatology (1981-2010) of the NCEP/CFSR reanalysis dataset. This forecast model is used by natural traders and investors to detect average, above average, or below average temperatures and thus natural gas demand.
Data provided by Levi Cowan at tropicaltidbits.com.