One look at the price of nat gas in the central states and you’d think it was a pennystock with a 1000% short interest: behold the price of Southern Star nat gas spot (Texas, Oklahoma, Kansas). It just hit $38 and is normally $2. Other spot prices for the same region are more than twice as high as we explain below.
As S&P Global Platts explains, the Midcontinent led the surge in US gas prices in Feb. 11 trading as a sharp rise in heating demand met a sudden collapse in supply due to regional production freeze-offs, significantly tightening balances across the much of the Central US, where many places found themselves with virtually no nat gas.
In morning trading, cash prices at hubs in Kansas, Oklahoma and eastern Arkansas hit levels not seen since 2014, with select locations hitting record highs, ICE data showed. Read more…..
Chart of the Day
Nov.12 — In this edition of “Futures in Focus,” Nick Potter, Equinor head of North American gas trading, sees natural-gas production “falling off a cliff.” He speaks on “Bloomberg Markets.”