Natural gas prices in Europe have fell to pre invasion levels now .
Example #5995 Of how real world pain and suffering due to dramatic changes that can occur in very small financial markets when speculators and investors enter these small markets in a very large way to take advantage of an external cause that disrupts supply / demand at a much smaller level (compared To the % movement in price of commodity )
Nearly Every article written in the financial press fails to touch on the core issue to these tremendous fluctuations in commodity prices , be it lumber , oil futures , Natty gas .
Occasionally you will hear a seasoned investors carefully spell out the dynamics so that the lay investor understands why the price of a commodity can move 150% when the supply / demand disruption is In the single digits .
Commodities have Tiny markets caps (by size $ ) in comparison to stocks and bonds Indexes are much more prone to disruption .
When the situation favors a clear change in the supply / demand dynamics tons of money tends to flow into them (or out ) And this large change in total $ invested into the asset class is responsible for the size of the move , not the actual amount of supply/ demand imbalance .
You just need a sure thing that will clearly push that supply / demand of a commodity in a sure way and money piles in and levers up, then when there is enough news that reverses this dynamic or it’s no longer a sure thing (milder weather than normal ) money that knows there is a bubble flows out fast .