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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It’s up almost $2 in past month.

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

Yes, I agree.

And stay up for a while. 

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

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

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?

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?

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.

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!

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.

when big buyers like power/gen roll out contracts that are higher, then the market price will adjust upward at the low base. if that happens. somewhat higher lows in the range will show that. alot of trader money at play right now driving price up. gonna get volatile while they play.

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