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U.S. natural gas prices leapt to their highest level in more than four years as unusually cold weather spread across much of the country. Gas stocks were very low, so the market moved to conserve supply.
Analyst Kemp noted that high prices could prompt gas-fired power producers to cut run hours and could discourage LNG exports.
Scarce storage combined with a cold snap pushes prompt gas prices sharply higher, and that raises feed costs for buyers using natural gas-linked inputs such as DDGS and energy-intensive processing. Higher gas prices also shift power generation toward coal.
reuters.comJohn KempNov 14, 2018After 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.
Describes prices reaching a four-year high on 2018-11-14 as cold weather spread and storage was very low, so the market moved to conserve supply.
