Commentary by Eric Wilder – Natural gas reached $15.78 per MCFG on the New York Mercantile Exchange today – an all-time high price.  The reasons are weather related.  As much as one third of this country’s daily production of natural gas remains shut-in in the Gulf of Mexico because of Hurricanes Rita and Katrina.  This weather-related shortage is exascerbated by unusually cold weather the U.S. is experiencing so early in the heating season.

Last week’s reported natural gas in storage would normally be plenty to get the U.S. through the heating season with no shortages.  This year is different.  Hurricanes and unseasonably cold weather could combine to produce shortages and energy outages before the end of the heating season.  Until spring, marketers will remain jittery and natural gas prices are likely continue climbing.  http://www.ericwilder.com   http://justeastofeden.blogharbor.com