6% Spike in Price of Henry Hub Likely Due to Weather, Storage

Long-range forecasts for hot weather and a lighter-than-predicted storage report for natural gas led to a 6% spike up in the price of the NYMEX Henry Hub yesterday, closing at $2.76/MMBtu. The National Weather Service released modeling yesterday that shows hot temps will get hotter for the end of July and the beginning of August. Also, the U.S. Energy Information Administration (EIA) released its weekly storage report yesterday, showing 41 Bcf was injected into storage for the previous week--lower than a predicted mid- to upper-40s Bcf. That was enough for traders to bid up the NYMEX price.

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