Nymex henry hub futures closed at 5.48$ and the Henry Hub Spot price closed at $5.51. Based on supply, demand and weather factors, my predicted Wellhead price for Dec 2009 was 3.72$.(mthly average value)
Wellhead prices are usually at a discount to the Henry hub spot price. A 3.72$ wellhead price transalates approximately to a Henry Hub spot price of around 4.46$. It would appear that NG prices are a little overextended.
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