With sincere apologies to Ozzy, looks like gas prices have just gone off the rails on a crazy train. Reese Energy Consulting is following the latest natural gas news that saw Wednesday’s SoCal citygate price perform a Simone Biles-like aerial feat, jumping $8.50/ MMBTU to a breath-taking $20.1/MMBTU. SoCal prices today have retreated somewhat to $18.66—still a 95.39% increase over last week. According to Natural Gas Intelligence, sweltering heat and limited capacity on the El Paso Pipeline are to blame for the nose-bleeding leap. But wait, there’s more. The price of electricity in Calif., is up a staggering 76.63% at $231.30/MWh with spot power thisclose to hitting the state’s $1,000 price cap. After shooting past $5/MMBTU yesterday for a few blinks, the Henry Hub October contract finally settled at $4.914/MMBTU. Meanwhile in Europe, which imports 60% of its gas, the pain is visceral after rising demand and depleted storage levels usually seen in winter now have sky-lifted prices from an average $4/MMBTU to $18/MMBTU, drawing protests by utility customers. Whew.
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