Price natural gas collapsed before frosts in EU
2022.12.14 14:13
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Price natural gas collapsed before frosts in EU
Budrigannews.com – Despite the fact that the first likely polar vortex in four years is only a week away, natural gas returned to a sell-off mode on Wednesday, with players taking profits and attempting to correct a market that had risen nearly 30% in the previous five sessions.
By 13:30 ET (18:30 GMT), the Henry Hub on the New York Mercantile Exchange was down 42.2 cents, or 6.1%, to $6.51 per metric million British thermal units.
The benchmark gas contract had gone from a six-week low of $5.34 on Dec. 6 to a fourteen day high of $7.10 on Dec. 13, setting off the benefit taking and amendment.
“With just over a week to go before a massive Polar Vortex enters the United States and blankets the majority of the country with bitter cold, ice, and snow; NYMEX front-month gas futures are selling off this morning, with prices fluctuating in the $6.50s/mmBtu range, according to a note on natural gas from Houston-based energy consultancy Gelber & Associates.
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Gelber mentioned that the price of gas in January increased by 34.8 cents to $6.935 at the end of the session on Tuesday. Even though that was a significant gain, it was evident that a force was fighting to keep prices below $7.11/mmBtu,” it added.
According to traders, the upcoming Arctic winter storm was likely to be the coldest December since 2010, making Wednesday’s market reversal noteworthy.
