Monday, August 24, 2009

NatGas Spot and Futures Prices Diverge

Now that the spot and near month futures prices for natural gas have fallen below $3 I feel a duty to follow them a little closer.  I've added the ticker to the top of the page to follow a few key metrics that impact the Haynesville Shale, but it's hard to boil it down to a small number when the story is so much more complex.

Today, the Henry Hub spot price decreased another 3.2% to $2.69.  This is the lowest price in a long time - at least seven years.  I'll let the news media give you the "lowest price since XXXX" story since that is more sensational.  Better news is that the near month futures price (in this case gas for September delivery) increased 5.3% to $2.95.  It's a sad day when a natgas price below $3 is good news. 

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