Wow! Natural Gas up to $4.63, up 13% today, hit high of $4.93

It’s almost $2 in past month. 

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Permalink Reply by james on November 14, 2018 at 1:24am

It’s up almost $2 in past month.

Permalink Reply by Albert Russell on November 14, 2018 at 1:43am

I would like to see it stay above 4 for a month or more 

Permalink Reply by james on November 14, 2018 at 1:49am

Yes, I agree.

Permalink Reply by Jackie Casselbury on November 14, 2018 at 2:34am

And stay up for a while. 

Permalink Reply by Brian Powers on November 14, 2018 at 2:56am

It's getting colder outside, though maybe not cold enough yet to have to tap gas in storage, so the law of supply and demand is working it's magic.

Storage should be full by now, so the gas in the pipeline ("line-pack" in the business) will supply the short term excess until the big demand period kicks in.

Brian

Permalink Reply by james on November 14, 2018 at 9:21am

Today’s jump in Natural Gas is the largest in 14 years for one day, up 18%.

Permalink Reply by Bullfrex on November 14, 2018 at 1:21pm

Brian,

From memory (admittedly bad), the storage level is below the 5 yr. average. This cold snap in the Eastern 2/3 of the US, if sustained, might just keep that upward pressure on pricing going forward.

Depending on duration of the cold (Global Warming? LOL) snap, where (when, level) do you see price of NG peaking?

Permalink Reply by farmgas on November 14, 2018 at 2:29pm

How does the NG price increase affect those gas companies who have committed hedge prices  from their customers and have those prices  worked into their plans?    Do they renegotiate with them for higher prices?   What if the new price goes above those hedge prices?

Permalink Reply by Bullfrex on November 15, 2018 at 1:41am

farmgas,

My understanding of price hedging....a buyer and seller agree on a price for a given volume of NG to be delivered in a set time frame. What the price does on the open market does not change that hedge agreement. Sometimes the seller wins.....sometimes the buyer wins....and I would guess the contract is not renegotiable unless both parties agree. Both parties wont agree because one of them made a good hedge and the other is stuck with the deal.

Permalink Reply by farmgas on November 15, 2018 at 1:47am

My thoughts as well...so the increase is great for the industry but we must see it for an indicator of improvement only right now.

I suspect the seller of gas to commercial & residential markets are happy!

Permalink Reply by Bullfrex on November 15, 2018 at 2:28am

Those E&Ps that are heavily hedged are less than ecstatic.....the spot market is where the money is made.

As always in the boom-bust gas biz....just wait a bit...it will all change.

Permalink Reply by james on November 16, 2018 at 2:11am

It was fun for awhile, hopefully that’s not the end of the run.

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