Commodities Buzz: US Natural Gas Price Volatility Soars During Second Quarter Says EIA

25 Aug 2022 , 03:32 PM

The US EIA noted in a latest update that US natural gas price volatility (a measure of daily price changes) reached its highest level in 20 years, hitting record highs in the first quarter (January-March) of 2022. The 30-day historical volatility of U.S. natural gas prices, which is based on the U.S. benchmark Henry Hub front-month futures price, averaged 179% in February compared with 57% during the first quarter of 2021. Historical volatility is a measure of daily closing price changes for a commodity at a specific time in the past. During July, historical volatility was lower on a percentage basis, in part, because natural gas prices were relatively higher than during the first quarter of this year. The Henry Hub front-month futures price averaged $7.19 per million British thermal units (MMBtu) during July compared with an average of $4.46/MMBtu during February. Natural gas price volatility averaged 124% during the first quarter of 2022 and 75% during the second quarter. Powered by Commodity Insights