US gas prices up 10% in morning trade
Natural gas futures prices on the New York Mercantile Exchange (NYMEX) were up nearly 10% in morning trade on January 28, taking cues from Asian LNG prices which have surged about 17% this week and ahead of a winter storm expected to lash the US Northeast with snow, cold and heavy winds this weekend.
On the NYMEX, March contracts for natural gas opened as the prompt month at $4.34/mn Btu and rose as high as $4.86/mn Btu before retreating to $4.72/mn Btu at about 10:45 am ET. On January 27, expiring February contracts surged to $7/mn Btu before closing at $6.26/mn Btu as traders were forced to cover short positions.
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In Asia, according to a Reuters report, the average LNG price for March delivery rose to US$27/mn Btu this week, up about US$4/mn Btu from the previous week. The report cited colder weather in Japan and Chinese desires to clear the air over Beijing ahead of the Winter Olympics, which kick off next week, as key drivers of the Asian price increase.