Increasing Gas prices

I am loving the increasing gas prices and the fact that we are getting more pipelines, electric plants, trucks,buses,boats,etc using it, and exporting it as well as letting the storage go down has helped but what am I missing?? Supply n demand could not have canged over night and the prices usually trend down during the summer.

Last night over night the market for NG increased by$.05+|- in closed market conditions????

Would love to see prices @ $10.00 any ideas would be greatly appreciated.

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Permalink Reply by Jon on June 30, 2016 at 2:42pm

The price shown is more like the average price in the us. It's not the same price everywhere. It's basically local supply and demand due to the availability of long distance gas lines. There aren't many around here, so the local price is really low. Other places it might be a lot higher.

Permalink Reply by Albert Russell on June 30, 2016 at 3:08pm

Jon,

Thanks for the information.

Permalink Reply by Jim Litwinowicz on July 1, 2016 at 2:16am

The price changed over night because the contracts went from July delivery to August.  When you see those prices, they are for contracts for delivery in the following month's delivery. The last week of the month, they advance to the next month which leads to a sudden price change. August will be hotter so they are expecting more air conditioner/electrical usage, bumping up demand for gas.

As others have said, that price is usually for Henry Hub(in Louisiana) or a MYMex price (New York Mercantile exchange). In Pa, gas prices are much lower because of excess production and a limited amount of pipelines to get the gas to where it is needed. Nat gas in Pa is more like $1.50/MCF. Hopefully, as more pipelines are brought online and usage increases, the prices we get for our gas will go up closer to the national prices. Two new nat gas generation plants are just now going online and more will be in the next year.

Permalink Reply by alexandra on July 1, 2016 at 3:55am

In northeast Pennsylvania it doesn't matter if prices go up or not.  The prices here have been between .85 to $1.10.  Until we get several more pipelines to transport the gas, our prices will remain in this area.  Then the oil and gas companies take 50 to 90% out of the landowners royalties. 

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