Natural Gas Plunge Makes History
September 22, 2020
Henry Hub NYMEX October natural gas spot prices have completed a major one-month drop. The contract hit $2.74/mmbtu on August 28 and plunged to below $1.88/mmbtu on September 21. Gas in storage appears certain to enter the winter at near record levels. This fundamental appears to weigh more heavily on markets versus recent Gulf of Mexico shut-ins in response to hurricanes and tropical storms.
The cash price for Henry Hub fell 26.5 cents on Monday to $1.32/MMBtu, the lowest for this location since December 1998.
Cash market prices trade daily for next day and rest-of-the-month gas supply and include the commodity and transportation.
This table from The Schork Report highlights an overall bearish bias across natural gas markets.
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