Can someone explain why there is huge price difference between NaturgalGas Feb and Jan futures price?
As to my knowledge,
Firstly, there is always a difference between different month contracts in any instruments.
Second, Naturalgas Jan expires on 25th jan, so there will be a volatality associated wrt to the settlement price and international price for near future.
and, last , due to the season being summer, and the US temperature is warmer, the speculation for next month contract is to be lower. However, as the contrat start trading actively from tomorrow, there could be up/down movement relation to international price and other factors.
Above are my view, and i do not actively trade NG
HTH
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