As we move into the Fall, a time of year that normally means lower natural gas demand, something unusual is happening: natural gas prices are spiking. Despite record production levels, the U.S. is heading into the Winter with natural stockpiles at their lowest level in at least a decade.
At the same time, a hotter-than-usual Autumn is keeping air conditioners running and there have been a number of nuclear power plant outages. As a result on Wednesday, natural gas prices jumped up nearly 20% over last month, hitting a seven-month high of $3.26/btu. However, they dropped back down yesterday on news that US inventories grew substantially last week, settling in at $3.16/btu.