There is a bit of a gap between various spot prices and the front futures, March's 2.928 +0.060 after dipping as low as 2.834 overnight.
From ZeroHedge:
One look at the price of nat gas in the central states and you'd think it was a pennystock with a 1000% short interest: behold the price of Southern Star nat gas spot (Texas, Oklahoma, Kansas). It just hit $38 and is normally $2. Other spot prices for the same region are more than twice as high as we explain below.
Why the stratospheric increase in prices?
As S&P Global Platts explains, the Midcontinent led the surge in US gas prices in Feb. 11 trading as a sharp rise in heating demand met a sudden collapse in supply due to regional production freeze-offs, significantly tightening balances across the much of the Central US, where many places found themselves with virtually no nat gas.
In morning trading, cash prices at hubs in Kansas, Oklahoma and eastern Arkansas hit levels not seen since 2014, with select locations hitting record highs, ICE data showed.
At One Oak Gas Transmission, Southern Star and Enable Gas, spot prices reached record highs around $85, $45 and $30/MMBtu, respectively.
At other hubs, including ANR Oklahoma, Panhandle and NGPL Midcontinent, prices hit their highest in seven years, topping $16, $14 and $12/MMBtu, respectively.
The culprit behind this unprecedented supply/demand imbalance: freezing cold....
....MUCH MORE
