Friday, September 11, 2009

Spot Price Jumps Again

I'm starting to think last week just didn't happen. The Henry Hub natural gas spot price closed today at $2.94, up 26 cents, or 9.7%, from yesterday. This is a whopping 56% increase from last Friday when the price simply fell off a cliff and closed at $1.88. While today's spot price is lower than I'd like, it is more in line with prices we were seeing a couple of weeks ago.

Interestingly, the futures price ended down sharply, losing 8% to close at $3.00. For the first time in a few weeks, the spot price and the near month futures price are not significantly out of alignment.

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