Natural gas markets skyrocket to 3-year highs today. The NYMEX front month rose $0.23 USD/MMBtu or 5% to settle at $4.57 USD/MMBtu, the highest price since December 2022. The rise wasn’t just isolated in the front month, as the entire calendar year increased by an average of $0.12 USD/MMBtu. There was no major change to fundamentals that would prompt such an aggressive move. The rally is more likely due to the national holiday with lower liquidity in the market. A strong correction day tomorrow is probable as participants will begin profit-taking on their open positions.

While cash prices sputtered in Alberta due to pipeline constraints, they rallied in Ontario due to the cold weather. At $4.48 CAD/GJ, Dawn cash prices were the highest since early April. (PB)