Henry Hub natural gas spot prices peaked on November 23 at $4.70/MMBtu, which is the highest price since a brief run-up in January 2018, and prior to that, since June 2014. This surge in prices is due mainly to the record breaking cold temperatures, with the National Oceanic and Atmospheric Administration reporting that heating degree days (HDD) in November totaled 14% higher than the 10-year (2008–2017) average.
Early last week, ERCOT announced its anticipated 8.1% reserve margin for the 2019 summer. This indicates tighter reserve capacity than last summer (10.9%) and suggests increased energy price volatility year/year. As a result, forward strips in ERCOT traded higher.
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