Markets

Traders Pile Into Explosive Natural Gas Rally

Traders piled into a frothy rally in the natural gas markets Tuesday, sending the price of the energy commodity to 2012 highs and seemingly hoping to turn a quick profit with a highly volatile trade before the market's momentum shifts.

Natural gas futures, which had reached levels so low back in April that they made extraction unprofitable for most producers, reached a 2012 high of $3.166 per million British thermal units during trading in the New York Mercantile Exchange Tuesday. Those futures were going for $3.134, up 0.8 percent from the previous day's settlement price, in mid-afternoon trading. Tuesday's price momentum came after a massive run-up from mid-June, when gas futures traded below $2.25 during several sessions. The rally has intensified over the past two weeks, with prices coming up more than 14 percent from levels near $2.75 just 6 sessions ago.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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