The price of natural gas is volatile. Last year’s cold winter depleted inventories. This summer inventories were rebuilt, but remain below last year’s level and the five-year average. A cold winter this year will cause natural gas prices to explode. Natural gas is one of the most volatile commodities that trade. The New York Mercantile Exchange (NYMEX) introduced futures on Henry Hub natural gas in April 1990. Henry Hub is a distribution hub on the natural gas pipeline system in Erath, Louisiana owned by Sabine Pipe Line LLC, a subsidiary of Chevron Corporation. Since 1990, active month natural gas futures have traded in a range between a low of $1.02 per million British thermal units (mmbtus) in January 1992 and a high of $15.65 per mmbtus in October 2005. Price spikes to the upside in 2005 and again in 2008 were due to hurricane activity in the Gulf […]