Natural Gas Soars to $1,250 in Central U.S. on Supply Paralysis

Source: Bloomberg

(Bloomberg) -- There’s no sign yet of a pause in the dramatic rally in natural gas prices across the central U.S., where spot rates have now breached the $1,000 mark, more than 100 times their level just a week earlier.

Prices for immediate delivery are skyrocketing as consumers scramble to find additional supply. U.S. production has fallen to a four-year low.

In contrast, the much more liquid futures market in New York is only up slightly for the week. The lack of significant price action there suggests traders view the impact of the arctic conditions as a relatively short-lived event.

Supply for next-day delivery at the Oneok Gas Transportation hub in Oklahoma traded at $1,250 per million British thermal units on Wednesday, according to David Hoy, a trader at Dynasty Power in Calgary. That’s up from $999 on Tuesday, and just $9 a week ago.



Read more: https://www.msn.com/en-us/money/markets/natural-gas-soars-to-dollar1250-in-central-us-on-supply-paralysis/ar-BB1dLohH?li=BBnb7Kz

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