NYMEX Gas Price Leaps 9.6% to Close at 2-Month High of $2.59

Yesterday the NYMEX Henry Hub futures price of natural gas spiked nearly 10% (9.6%)--in a single day. It closed at $2.592/MMBtu, the highest closing number since March 13, over two months ago. The main reason for the price spike is a new weekly gas storage number issued by the U.S. Energy Information Administration (EIA). The new gas added to storage was slightly lower than estimates predicted. The recent decline in the rig count last week (see U.S. Natural Gas Drilling Rig Count Craters, Down 10% in One Week), combined with less gas going into storage, prompted traders to bid up the price.

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