Replies to This Discussion

Permalink Reply by LP on December 16, 2009 at 14:19

Whoa ! I looked at the Bloomberg site just after the market closed and the Spot Gate was $6. something. Could this $8.48 be a typo?

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Permalink Reply by Scott on December 16, 2009 at 15:12

They usually don't update the market closure of spot prices until around 5:00 Eastern time. You probably saw what it closed at yesterday.

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Permalink Reply by Scott on December 16, 2009 at 16:18

I don't think so. It closed around 6 yesterday
and if it was up 2 dollars then that would put it around 8. Really cold weather up here. I imagine that should be the reason. Just my opinion though.

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Permalink Reply by Les Bamburg on December 16, 2009 at 17:13

David, daily (spot) natural gas prices do not really have much bearing on production as the vast majority of production is sold on a monthly basis rather than daily basis.

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Permalink Reply by Bobi Carr ("parker") on December 16, 2009 at 17:33

Would the increase be indicative of a trend illustrating that ExxonMobile has people believing in a brighter future for natural gas, or is this just normal seasonal fluctuations?

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Permalink Reply by Cheerleader on December 16, 2009 at 17:51

Exxon began running T.V. commercials for natural gas. I saw one yesterday.

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Permalink Reply by Les Bamburg on December 17, 2009 at 17:13

Parker, the jump in daily gas price in the Northeast is primarily just a weather event. You will note the supply region prices did not experience a similar increase.

We should see a more gradual increase in overall gas prices as demand returns as supply decreases due to the slowdown in drilling.

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Permalink Reply by David on December 17, 2009 at 5:42

Les-

I understand about pricing, still, for NG spot to jump 35% in a single day is unheard of, at least to my recollection.

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Permalink Reply by essay on December 17, 2009 at 6:11

henry hub spot had been wildly volatile until we had a net withdrawal last week, i saw two @30% moves myself

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Permalink Reply by David on December 17, 2009 at 6:20

Was that in a single day or over the week, essay?

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Permalink Reply by essay on December 17, 2009 at 6:29

single day, i can't remember exact timing but i think the up move was on a monday

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Permalink Reply by Les Bamburg on December 17, 2009 at 17:10

David, daily gas prices in the Northeast market region can experience such significant increases - especially during cold snaps. Because interstate gas pipeline capacity into the region is limited, sudden increases in gas demand can radically increase prices. In the past it was not unusual to see gas prices triple for a few days as it becomes critical to meet gas demand.

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