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

[Yo_Mama_Been_Loggin]

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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Vulture capitalism.

[rickyhall]

1. There goes our stimulus to the fucking capitalists, the fucking oil companies.

[jayfish]

3. I'm Surprised It Took This long. -NT-

[Roy Rolling]

2. We are so Clueless

The headline. Natural Gas didn’t do anything, it was the same yesterday as today. Exactly the same.

So why can they extract $1,250 today for what they asked $9 last week?

Think about it. If you were shopping, would you pay $1,250 today or store some gas last week at $9for lean times like these?

Of course you would. But you didn’t get the choice because Texas government politicians have signed a contract with gas utilities for you. You’re contracted to used XYZ Gas, you can’t switch as fast as they jack up the rates.

And there is the disadvantage that has people in Texas going bankrupt while utilities friendly to government politicians make windfall profit$.

[Auggie]

4. I thought utilities had long-term contracts