Natural gas markets are experiencing a complex set of dynamics as colder weather approaches the Northeast, driving up regional spot prices. The Algonquin Citygate, serving the Boston area, saw a significant price increase of $1.86, reaching $11.90/MMBtu on December 11, 2024. This rise is attributed to the anticipated colder weather and a force majeure event on the Tennessee Gas Pipeline, which reduced pipeline capacity by 21% due to ongoing repairs. Meanwhile, the Henry Hub spot price rose by 28 cents to $3.11/MMBtu, reflecting broader market trends.
Despite these regional price increases, the overall sentiment in the natural gas market remains cautious. The January 2025 NYMEX futures contract saw a 34-cent increase, closing at $3.378/MMBtu, while the 12-month strip averaged a modest 12-cent rise to $3.282/MMBtu. These movements suggest a market balancing between immediate regional demand spikes and broader supply dynamics, including increased deliveries from the Appalachian Basin to the Southern Corridor.
The ProShares Ultra Bloomberg Natural Gas ETF (BOIL) is down 1.75% in pre-market hours on Friday, December 13, falling to $44.88 as of 6:45 AM ET.