Price volatility falls to prewinter levels as storage injection season nears Natural gas markets entered January 2014 with low storage levels, following heavy withdrawals at the end of 2013. In January 2014, Lower 48 working inventories fell to a 10-year low, as freezing temperatures led to record natural gas demand and storage withdrawals. Significant inventory drawdowns continued into February 2014 , further tightening the balance between natural gas supply and demand and leading to increased natural gas spot price volatility, before relatively less severe temperatures in March brought spot price volatility back to prewinter levels. The Henry Hub natural gas spot price spiked on many days in January and February. As the winter progressed, increased spot price volatility led to increased interest in monthly delivery contracts, which provide a measure of protection against daily price fluctuations. This was particularly the case during the final three days of trading (bidweek) […]

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