Tuesday, October 20, 2009

She Loves Me...She Loves Me Not

She loves me so far this week. By she, of course I'm referring to the Henry Hub spot price for natural gas. She was up a whopping 42 cents, or 10%, today to $4.60/MMBtu. This price represents an increase of 98% from the close on Friday October 2, just 12 trading days ago.

Looking at the futures market, the November futures price was up 7% to $5.17/MMBtu and the December 2009 futures price now stands at $5.92/MMBtu.

I won't speculate on the reasons for the sudden increases in nag gas prices - seasonal price increases, inclement weather, trader sentiment, storage, etc. - I'll just silently bask in the glow of a rising commodity price environment.

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