Natural-gas prices hit $5 a million British thermal units for the first time in 3 ½ years on expectations that continued cold weather would keep demand high for the heating fuel.
Natural gas for February delivery rose as high as $5.026/mmBtu on the New York Mercantile Exchange before pulling back slightly. The February contract recently traded up 26.4 cents, or 5.6%, at $4.994/mmBtu. The rally highlights concerns about supply, after several years of booming U.S. production. The amount of gas stored in the U.S. has dwindled in recent weeks as heating demand has ramped up.
Inventories as of Jan. 17 stood at 2.423 trillion cubic feet, 13% below the five-year average for the week. Supplies now stand at 1.686 trillion cubic feet, 27% below the five-year average level for the same week, according to the EIA. If the cold weather persists, those supplies would dwindle further.Apparently the article I have on-line has been changed slightly from the original article which was linked/quoted at the MDU message board. In that article this was noted:
"The focus right now is: Do we have enough gas to deliver to customers in March?" said Ben Smith, president of market-data service First Enercast Financial in Denver. "We really have over a month of winter still."More cold weather is expected.
Don suggests a poll to see if anyone expects natural gas to hit $6 or more on the New York Mercantile Exchange before this winter season is over. Posted.
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Rounding Up The Usual Suspects
The Dickinson Press is reporting a freshwater pipe leaked the other day resulting in "some water" flowing into a drainage ditch. The company said there were no additives in the "fresh water." The state is taking samples and rounding up the usual suspects.
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