Natural gas prices surging… CNBC

by Jim Colburn • Monday, October 8, 2018

Here is what’s been going on in natural gas (the lower chart is implied volatility):

Tom DiChristopher at CNBC has a nice piece explaining why, here:

”On the one hand, U.S. natural gas production is rising at a record-breaking pace of about 9 billion cubic feet per day. But gas demand for power generation is also at a record. Three new U.S. liquefied natural gas export facilities are scheduled to open through the first quarter of 2019, gas-consuming industrial projects are coming online and new connections are slated to deliver U.S. supplies to Mexican power plants.

“These offsetting factors point to a gas market that will balance on a knife’s edge this winter, with little spare room on either side,” according to Cohen.”

(The chart is from Barchart.com…)

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