NYMEX NatGas Price Comes Close to $3 on Low Storage, LNG Demand

We finally have some good news to report regarding the NYMEX futures price of natural gas. The price briefly flirted with $3.00 before closing at $2.94 yesterday. However, the cash (spot) price for gas sold at trading hubs around the Marcellus/Utica region didn't fare so well. We'll get to that. The NYMEX price went higher due to a lower-than-expected storage build and strong demand from LNG exports. An analyst interviewed by Reuters said the price moved higher because storage numbers were "a little tighter than estimates, which has sparked some short-covering." The NYMEX has moved up for the last three trading days, up 24.80 cents (9.20%). The $3 level is an important psychological price point.

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