NatGas Makes a Run at $7/MMBtu – Highest in 13 Yrs – “Fear Premium”

The "front month" May NYMEX natural gas futures contract "exploded" (poor choice of words?) yesterday, going up 37 cents in a single day to close at $6.64/MMBtu. Yesterday's price for NYMEX natural gas was the highest in the past 13 years. In trader's language, "key resistance" has been in the $6.10-$6.30/MMBtu range. Previous price rallies "petered out" after going past $6, never getting by $6.30. That's all behind us now. So why are prices spiking now with warmer spring weather on the horizon?

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