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Natural gas spot prices at Sumas on the Canada-Washington border averaged $161.33/mmBtu on March 1, the highest daily price Natural Gas Intelligence recorded anywhere in the US in at least five years. The spike followed a polar vortex, unusually cold weather, and reduced flows after an October 2018 pipeline explosion on Enbridge's BC Pipeline.
The spike was a regional, short-lived supply and weather shock that has since faded, so its effect on national gas and feed-ingredient costs is limited. It does show how fragile Western Canadian and Pacific Northwest supply can be during cold snaps.
eia.govApr 3, 2019After 221 past bullish weather events, Natural Gas moved a median +3.3% over 5 sessions (61% higher; middle half -5.2% to +14.0%), and -0.3% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
