Roller Coaster Ride Continues – NatGas Price Spikes Up $0.43

We’re not going to continue to cover news about the price of natural gas each day, because the price goes up, then it goes down, then it goes back up…you get the idea. We will, however, bring you one more story today on the price of natgas, because of the ongoing wild swings in price. The fact that prices goes up and down is not mysterious and frankly, not noteworthy. What is noteworthy is the sudden and dramatic swings–called volatility in the business. Last Wednesday the NYMEX futures price for gas hit a four-year high, up 18% in a single day (see Price of NatGas Spikes to Highest Level in 4 Years – $4.84/Mcf). The very next day the price crashed, down 20% in a single day from the previous day (see Wild Ride – Price of NatGas Crashes Day After it Spikes, Down 20%). The price stayed “low” relative to the previous high for a few days, then spiked up again yesterday, going up 9% to close at $4.70/Mcf. Arctic cold weather is hitting the northeast, combined with somewhat low storage levels, leading to a bump up in price. What lies ahead over the next few days and months? One analyst believes we’ll see prices close to or even above $5/Mcf–tomorrow.

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