Thursday, December 31, 2009

Gas Spot Price ends 2009 at $5.83

The Henry Hub natural gas spot price closed at $5.83/MMBtu today (Dec. 31, 2009).  Compared to last year's close of $5.63, this represents an increase of 3.6%. 

This slight change in no way reflects the lows ($1.88 on September 2) or the often insane volatility for the year (especially from September to November) of the past year.  I accumulated the data for the chart below, and it shows how divergent 2008 and 2009 were but how closely they ended. 

A quick survey of natural gas industry analysts suggests spot prices in the range of $6.50 to $7.50 in 2010 without the same amount of volatility.  We'll see...

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