NYMEX Gas Price Huge Spike of $0.80, Flies by $9, Heading for $10

In what is being called an "explosive" trading session yesterday, the price for the front-month NYMEX contract (July) spiked up 80 cents in a single day to close at $9.32/MMBtu--the highest level in over 13 years. The August NYMEX contract closed at one penny less, $9.31/MMBtu. The weather seems to be the main reason for the spike. Longer range forecasts for Texas and the Midcontinent region are for high heat in the coming weeks. The high heat will lead to running air conditioners that use electricity. Windmills in Texas are "faltering" and not expected to deliver their normal load, meaning natgas plants will need to make up the difference. Once again unreliable renewables prove they are not up to the task.

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