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U.S. natural gas prices spiked by a record 70% on Thursday, driven by low-volume trading in the expiring February contract. Most traders had already moved to other contract months, leaving thin liquidity in the final session.
The move was largely a technical expiry effect rather than a physical supply shift, so it signals volatility in Henry Hub pricing for buyers hedging feed-energy costs. Prompt-month price discovery was distorted, which can raise hedging costs for feed mills.
reuters.comScott DisavinoJan 28, 2022Not enough comparable past events yet for a historical read.
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.
The explainer describes the record ~70% Thursday spike from low-liquidity expiry trading, the same mechanism, but it was published 2022-01-28, after the move date.
