Monday, April 2, 2012

Gas Prices Below $2 For Second Day

The spot price of natural gas as measured at Henry Hub was below $2/MMBtu for the second straight trading day. This afternoon, gas closed at $1.87/MMBtu, the lowest price since the beginning of the shale gas revolution five years ago. In the first week of September 2009, gas dipped to $1.88/MMBtu on a Friday but recovered to $2.45/MMBtu by Monday. No such luck this time:  this past Friday, gas closed at $1.98/MMBtu, but the price kept dropping today.

How low will it go?  In some articles about the gas storage/price situation some analysts suggest that providers might give gas away (presumably for logistical reasons). If that comes to pass, I guess the price has a looooong way to go down since zero is still pretty far away.

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