Heat wave breaks a bit and natural gas prices drop

ByRod Adams

The heat wave causing the East Coast to swelter and crank up the air conditioning has eased a bit, and Chris has been downgraded from a tropical storm to a depression that no longer threatens Gulf of Mexico production. Those two factors have helped to reduce the price of natural gas at New York City Gate by nearly 20% in just two days.

As of the close of trading yesterday, here are the prices at some key locations:

NYMEX Henry Hub Future$7.25 per million BTU
NYMEX Henry Hub Spot$7.44 per million BTU
New York City Gate Spot$8.34 per million BTU

Source – Bloomberg. Com Energy Prices 4 August 2006

As mentioned before, natural gas prices at particular trading hubs can be quite volatile, increasing and decreasing rapidly. Utilities generally are able to shield their customers from such wide variations and seek to provide more stable pricing.

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Rod Adams

Rod Adams is Managing Partner of Nucleation Capital, a venture fund that invests in advanced nuclear, which provides affordable access to this clean energy sector to pronuclear and impact investors. Rod, a former submarine Engineer Officer and founder of Adams Atomic Engines, Inc., which was one of the earliest advanced nuclear ventures, is an atomic energy expert with small nuclear plant operating and design experience. He has engaged in technical, strategic, political, historic and financial analysis of the nuclear industry, its technology, regulation, and policies for several decades through Atomic Insights, both as its primary blogger and as host of The Atomic Show Podcast. Please click here to subscribe to the Atomic Show RSS feed. To join Rod's pronuclear network and receive his occasional newsletter, click here.

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