NYMEX HH Natural Gas Price Trades Above $8/MMBtu, Closes @ $7.95

Natural gas traders' nerves have gotten the better of them. Yesterday the NYMEX "front month" futures contract price for natural gas hit $8.14/MMBtu before falling back to close at $7.95. That is the highest price NYMEX gas has traded for in the past 14 years--since 2008. The main reason for this most recent spike up seems to be chatter about European countries imposing tighter sanctions on Russia, and the very real possibility Russia may retaliate by cutting off gas supplies to European countries beyond Poland and Bulgaria. A contributing factor is a temporary decrease in pipeline flows in both the Bakken and the Marcellus/Utica.

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