Henry Hub Natural Gas (NG) Futures Reach New All-Time Open Interest Record (click for larger version)
A funny thing happened in the natural gas market on September 1. With gas trading below $3 per MMBtu, with U.S. storage on pace for an all-time record, and with the heating season still three months away, traders piled into Henry Hub natural gas futures in numbers never seen before. CME Group announced Tuesday that open interest in its Henry Hub contract hit 1,807,497 contracts — an all-time high. Records are usually set in November, right before winter. This one got set at the tail end of summer. Below, we unpack what that number actually means, and why it matters to a landowner in Greene County, PA, who has never traded a futures contract in his life.
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