runup

Over the past month since the NYMEX natural gas contract hit the low of $1.91/MMbtu, the price has screamed upward by $.83/MMbtu, or 44% to $2.737/MMbtu yesterday, up 3 cnts. That’s a pretty good run.  Do the fundamentals really support that price level?  What has changed in the supply/demand balance to warrant such a turnaround?  Is this price run a head fake?  We’ll explore these issues today.