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Nymex Henry Hub has surged 40c to near $5.00/MMBtu Wednesday morning. The Winter 2021/2022 strip has rallied 36c to $5.01/MMBtu. Summer 2022 us up 9c to $3.67/MMBtu.
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Without a clear reason or fundamental shift for the rally, the rumor mill is full of guesses. Short squeeze tops the list for rampant buying. The seven-year high in price comes amid tight supplies heading into the winter heating season. Hurricane Ida has disrupted operations on the Gulf coast, causing production to be curtailed.
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The timing of the jump higher, starting at 8:30 AM, coincides with some previous surges in price recently. Morning weather-model runs can sometimes cause volatile price action as well.
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