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The expiring NYMEX February natural gas contract climbed as high as $7.40/MMBtu before settling at $6.265, nearly $2 above the prior settlement. Analysts said the move was largely technical, citing a classic short squeeze.
Analysts viewed the spike as financial rather than physical, so underlying supply and demand were not materially changed. Feed buyers should expect continued energy-cost volatility as expiry-driven swings can distort near-term price signals.
spglobal.comJ Robinson, Kelsey HallahanJan 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.
It documents the February contract rising to $7.40 and settling at $6.265 (~$2 higher) in a technical short squeeze, matching the move, though it was published the day after.
