Henry Hub Rises Thanks in Part to Gas Flowing to Freeport LNG
Have you noticed? The NYMEX price of natural gas has been on an upward trend over the past week or so. We've actually broken the $2 barrier, and it continues to climb. Which begs the question, why? There are typically a number of factors combined to drive the price. This time around, we think we can boil it down to a classic economics principle --- there's more demand and less supply. The demand is coming from the problem-plagued Freeport LNG facility, which is rockin' and rollin' once again. Lower supply is coming from fewer natgas drilling rigs in operation.
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