Flash Alert: Why is natural gas price spiking?
Posted: Wed Sep 08, 2021 12:04 pm
Note from AEGIS:
Nymex Henry Hub has surged 40c to near $5.00/MMBtu Wednesday morning. The Winter 2021/2022 strip has rallied 36c to $5.01/MMBtu. Summer 2022 is up 9c to $3.67/MMBtu.
Without a clear reason or fundamental shift for the rally, the rumor mill is full of guesses. Short squeeze tops the list for rampant buying. The seven-year high in price comes amid tight supplies heading into the winter heating season. Hurricane Ida has disrupted operations on the Gulf coast, causing production to be curtailed.
The timing of the jump higher, starting at 8:30 AM, coincides with some previous surges in price recently. Morning weather-model runs can sometimes cause volatile price action as well.
Nymex Henry Hub has surged 40c to near $5.00/MMBtu Wednesday morning. The Winter 2021/2022 strip has rallied 36c to $5.01/MMBtu. Summer 2022 is up 9c to $3.67/MMBtu.
Without a clear reason or fundamental shift for the rally, the rumor mill is full of guesses. Short squeeze tops the list for rampant buying. The seven-year high in price comes amid tight supplies heading into the winter heating season. Hurricane Ida has disrupted operations on the Gulf coast, causing production to be curtailed.
The timing of the jump higher, starting at 8:30 AM, coincides with some previous surges in price recently. Morning weather-model runs can sometimes cause volatile price action as well.