8 votes

Natural gas skyrockets again to $500 as blackouts spread in US

1 comment

  1. skybrian
    Link
    From the article: [...] Here's another article about natural gas futures and oil [...] Oil production:

    From the article:

    Gas at two hubs in the U.S. Midcontinent was trading at $500 per mmBtu and went for $240 at a third on Monday, according to traders. Spot gas has been trading for hundreds of dollars across the central U.S. since Thursday with a surge in heating demand triggering widespread blackouts and sending electricity prices soaring. The fuel normally trades in the region for less than $3 per mmBtu.

    [...]

    Gas production has fallen by more than 10 billion cubic feet a day over the past week, data compiled by BloombergNEF show.

    Here's another article about natural gas futures and oil

    March natural gas HOH21, 2.36% climbed 22 cents, or nearly 7.5% to settle at $3.129 per million British thermal units, with front-month contract prices logging their highest settlement since early November of last year, according to Dow Jones Market Data.

    The surge in prices came as the Southwest Power Pool, a group of utilities covering 14 states, ordered utilities to start rolling blackouts to cope with an exhausted supply of reserve energy. That came as a winter storm swept from the Ohio Valley to the Gulf Coast of the U.S., bringing freezing temperatures as far south as San Antonio.

    [...]

    “For natural-gas producers, it is a ‘theoretical windfall’, but practically just a missed opportunity,” said Raj. “Even though prices have skyrocketed beyond anybody’s belief, little gas is actually available to trade at these prices.”

    Oil production:

    The freeze hasn’t only affected the power supply and brought production of more than one million barrels a day of crude production to a standstill, but has also hindered pipeline operations and other means of transport, as well as Texas Gulf Coast refineries with a capacity of more than 3 million barrels a day, said Eugen Weinberg, commodity analyst at Commerzbank, in a note.

    2 votes