Natural-Gas Prices Heat UpBy NICOLE FRIEDMAN and BRETT PHILBIN
Natural-gas futures rose 7.2 cents, or 1.7%, to $4.409 per million British thermal units Thursday, the highest price since July 2011. Natural gas is the best performer this year among the 22 commodities in the Dow Jones-UBS Commodity Index.
Investors say gas could keep climbing for as long as the cold spell lasts—potentially through December, according to some forecasters. Supplies are down from a year ago, while demand is rising as power plants switch from coal to gas.
Now these caverns and storage facilities are being drained. Supplies are down 7.2% from a year ago, according to the EIA.
Problem being the futures market is now slightly in backwardization. What I do believe this demonstrates however is how much a real economic recovery could raise natural gas prices.
American homes do use less energy. But again Progressives have made sure what should be a gain in our living standards is more than consumed for their base load solar and wind delusions of irrational primitive religion. So generation demand must come from economic activity.
Given the next to non-existent spark spreads in the commercial markets, business remains focused on efficiency not expansion.