Thursday, September 17, 2009

See Spot Run

OK, enough with the "spot" puns, but I couldn't resist. In less than two weeks, we've seen the Henry Hub spot price of natural gas rally an astonishing 84% from its (very) low price of $1.88 on September 4. The spot price closed at $3.46 today, up 5.5% from yesterday. It's still well below last year's price, but it's creeping back towards where it stood six months ago.

This price spike is probably as much due to investors' warmer feelings about the economy and the fundamentals of gas as it is to activities of traders who seem to have declared a bottom. Whatever. Keep it coming.

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