Despite a small decline yesterday, the U.S. Henry Hub natural gas benchmark rate is now up 36.7% for the month.
At close yesterday, the price was $3.61 per 1,000 cubic feet or million BTUs (British Thermal Units), the standard measurement in the U.S.
To put that in some perspective, the price was $1.96 as recently as May 26, and the year-to-date low was $1.65 on March 3. Meanwhile, the $3.65 level reached at close on Monday, December 5 was the highest in two years.
Traditionally, the price for natural gas in the U.S. has been heavily by the seasons, with the severity of winters generally being the main determinant of how high prices would go.
But that’s no longer the case…
With demand for natural gas coming from many new sources, the price is no longer tied to the weather – setting prices up to go higher.