February 12, 2021 | 7:53 pm
The price of natural gas soared due to the cold weather in the United States, which has affected processing plants in Texas and other areas of the country.
This Friday, prices for natural gas delivered to the Oklahoma hub closed at $ 377.13 per million BTUs. On Wednesday, they finished at $ 9 and started the week at less than $ 4.
“Prices have skyrocketed 4.090% in two days in Oklahoma. Meanwhile, production in the Permian Basin, the largest shale producer in the United States, is moderating due to the fact that wells reduce activity or stop it completely, ”the news agency detailed.
In Texas, the liquid froze inside the pipes of gas processing plants, just as demand for heating oil increased, Bloomberg explained Friday.
Houston Ship Channel spot gas hit $ 225 and Waha prices skyrocketed to $ 350, reportó Natural Gas Intelligence (NGI).
“Over the last year in Texas and Oklahoma, we’ve had prices ranging from -10 to $ 600. Unbelievable,” said Patrick Rau, Director of Strategy and Research at NGI.
According to AccuWeather, the forecasts call for temperatures below -6 degrees Celsius overnight on Saturday in areas of Arkansas, Oklahoma, Kansas and Texas.
Natural gas prices soared ahead of the long weekend for the Presidents’ Day holiday, which falls on February 15.
Cold impacts other markets
The price of electricity also went up. In North Texas, it averaged $ 386.26 per megawatt hour at 3:45 p.m. (local time), compared to an average price this month of $ 18.16, according to data compiled by Bloomberg.
US wheat futures rose on Friday on concerns that Arctic temperatures in major growing areas could damage the dormant crop over the weekend, traders said.
“A major winter storm is forecast in the south-central United States and will move eastward early next week,” CHS analysts said. “These freezing conditions should disappear in 11 to 15 days, to give way to more moderate climatic conditions,” they estimated.
Soybean futures also rose after trading in negative territory for much of the morning, as traders squared their positions heading into the weekend.
With information from Reuters and AFP