CME Group, which operates the Chicago Mercantile Exchange and New York Mercantile Exchange (NYMEX), announced in September that it would launch Micro Henry Hub futures and options beginning November 6 (see CME Group Launching “Micro” Henry Hub Futures & Options Nov. 6). The launch happened, and in under three days, Micro Henry Hub futures surpassed…
Read More...Once a month, U.S. Energy Information Administration (EIA) analysts issue the agency’s Short-Term Energy Outlook (STEO), their best guess about where energy prices and production will go in the next 12 months. Last month, the report predicted new all-time highs for natural gas production in 2023 (see EIA Boosts Prediction for Record-High NatGas Prod. 2023…
Read More...Just when we were beginning to feel comfortable that maybe, just maybe, the price of natural gas would stay higher for longer instead of lower for longer, yesterday happened. Did you notice? The price for the “front month contract” of the NYMEX Henry Hub got whacked, falling a full 25 cents in a single day,…
Read More...Have you noticed the nice rise in the price of gas? Yesterday, the NYMEX Henry Hub price rose $0.22 to close at $3.58/MMBtu (up 6.24% in a single day). Cool! Better yet, the spot price of natural gas in the Marcellus/Utica region is on the march, too. According to Argus Media, spot natural gas prices…
Read More...The Baker Hughes rig count has crashed this year compared to last year’s numbers. A few months ago, we began to chronicle the weekly rig count to keep track of this alarming situation (which we post about every Monday). U.S. Energy Information Administration (EIA) analysts have taken notice of the crashing rig count and asked…
Read More...Once a month, U.S. Energy Information Administration (EIA) analysts issue the agency’s Short-Term Energy Outlook (STEO), their best guess about where energy prices and production will go in the next 12 months. Last month, the report predicted new all-time highs for natural gas production in 2023 (see Record High NatGas Production & Demand in 2023…
Read More...Finally! We knew it would happen sooner or later. We committed to stop reporting on the price of natural gas unless and until the NYMEX went over $3/MMBtu and stayed there, which happened last week. The front-month NYMEX natural gas contract was close to $3 last Wednesday, closing at $2.99. On Thursday, the price closed…
Read More...In September, production from the Marcellus and Utica shales averaged just under 35.1 Bcf/d — down from a nearly two-year high at 35.3 Bcf/d in August, according to data from S&P Global Commodity Insights. Over the past three years, producers in the Marcellus/Utica have dialed back output in September. Why? Cooling temperatures that lead to…
Read More...According to an analysis by S&P Global Commodity Insights, large U.S. shale gas drillers (namely Marcellus/Utica drillers) have hedged (pre-sold at a specific price) an average of 50% of anticipated shale gas production for the second half of 2023. The average price of the hedges is $3.35/Mcf, far above the average NYMEX Henry Hub price…
Read More...For traders who buy and sell NYMEX Henry Hub futures (and there is a fair number who read MDN), listen up! CME Group, which operates the Chicago Mercantile Exchange and New York Mercantile Exchange (NYMEX), announced it is launching Micro Henry Hub futures and options beginning November 6. The standard Henry Hub natural gas futures…
Read More...According to the International Gas Union’s (IGU) 2023 Global Wholesale Gas Price Survey report (full copy below), 2022 was THE most turbulent year in the history of gas markets, as the global energy crisis intensified and the global price levels reached record highs. Last year saw record price levels, with Europe’s wholesale prices reaching over…
Read More...We continue to monitor the price of natural gas, which has remained mired in the mid-$2 range for months on end. Every time it seems like it might make a run for $3, the price slides–as it did yesterday (down $0.12 to close at $2.73). We spotted two somewhat contradictory stories about the price of…
Read More...Yesterday MDN editor Jim Willis had a nice chat with a renewing MDN subscriber (a landowner with wells and leases in Ohio). The question arose, “What do you see happening right now?” Jim’s response: “As long as the price of natural gas stays below $3, not much!” Jim made the point that price drives this…
Read More...Once a month, U.S. Energy Information Administration (EIA) analysts issue the agency’s Short-Term Energy Outlook (STEO), their best guess about where energy prices and production will go in the next 12 months. The latest monthly report, issued Tuesday, predicts that U.S. natural gas production AND demand will rise to record highs in 2023. EIA projected…
Read More...Long-range forecasts for hot weather and a lighter-than-predicted storage report for natural gas led to a 6% spike up in the price of the NYMEX Henry Hub yesterday, closing at $2.76/MMBtu. The National Weather Service released modeling yesterday that shows hot temps will get hotter for the end of July and the beginning of August….
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