Thursday, January 7, 2010

Yipes! Gas Spot Price Jumps 17%

The Henry Hub natural gas spot price jumped $1.08, or 16.8%, today to close at $7.51/MMBtu.  Obviously the frigid weather has something to do with it, so don't count on this price holding for too long.  The storage withdrawal last week was pretty big, but I think analysts would still argue that the fundamentals of natural gas still need improvement.

It's hard to believe that 125 days ago on September 4, 2009, the Henry Hub spot price closed at $1.88/MMBtu.  Since then it has gone up 300%.  If you are a nerd like me, that translates into a 5,606% internal rate of return.

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