Natural gas prices
Last week, the week ending September 28, the EIA (U.S. Energy Information Administration) reported that the natural gas prices in the United States were mixed. We have been tracking natural gas for nitrogen players (MOO) like CF Industries (CF), Nutrien (NTR), and CVR Partners (UAN). They have been fairly stable in 2018. Last week, natural gas prices remained higher than $3 per MMBtu (million British thermal units).
Last week, the natural gas prices in Henry Hub rose to $3.13 per MMBtu from $3.06 per MMBtu in the week ending September 21. The front-month November contract prices also rose by $0.10. The prices remained below the $3 level at $2.98 in the week ending September 28. So, what led to the increase in natural gas prices last week?
According to the EIA, the natural gas prices were higher due to cooler weather. As a result of an increased heating need, the natural gas demand increased and prices rose.
According to the EIA’s Short-Term Energy Outlook report, the natural gas prices were expected to be $2.99 per MMBtu for 2018. The EIA expects the average natural gas prices to increase to $3.12 per MMBtu in 2019. The EIA is scheduled to release the next outlook report on October 10.
Next, we’ll discuss phosphate fertilizer prices.