New York May 5 2022: US natural gas spot and futures prices soared above $8/MMBtu in May 4 trading, continuing a three-day rally as market watchers expressed doubts on whether the fundamentals support such a surge.
The NYMEX Henry Hub June contract settled 46.10 cents higher at $8.415/MMBtu May 4, preliminary settlement data from CME Group shows.
The prompt-month futures contract last settled above $8/MMBtu in August 2008.
The ongoing rally has seen the June contract move more than $1.50 higher over the last five trading sessions. Futures prices began to rise in mid-March after spending most of the first-quarter winter demand season in a more moderate $3-$4.50/MMBtu range.
The May 4 rally in the US physical spot gas market extended to every region, regardless of each region’s underlying May 5 supply and demand fundamentals. In the Southeast, Henry Hub cash jumped 44 cents to reach $8.295/MMBtu at preliminary settlement, while in the Northeast, the Algonquin city-gates rose 20 cents to $8.46/MMBtu. Turning to the Upper Midwest, the Chicago city-gates traded 23 cents higher to reach $8.21/MMBtu. In the Rockies, the Cheyenne Hub climbed 24 cents to reach $8.05/MMBtu and, in East Texas, the Houston Ship Channel surged 42 cents to reach $8.22/MMBtu.
Just seven days earlier, most US spot gas prices were trading in the $6-$7/MMBtu range.
