Short Squeeze: NYMEX NatGas Up Another 50.6 Cents to $7.46/MMBtu

A pretty unique situation is happening with the price of natural gas, both the NYMEX futures price and the spot (cash) price. Yesterday was the last day for the NYMEX February contract as the "front month." The price, already high, rose further, adding 50.6 cents from the previous day to close at $7.46 per million British thermal units (MMBtu). It is the highest settlement value since Wednesday, Sept. 21, 2022. However, yesterday the physical spot (cash) price for natural gas crashed back down to earth. The benchmark Henry Hub lost about 75% of its value yesterday. Today, the March NYMEX contract becomes the "front month." As of this morning, the March contract is trading around $3.80/MMBtu. The reason the NYMEX soared again yesterday was a short squeeze.

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