Forward prices are typically a good indicator of the market’s perception of where a particular commodity will be trading based on certain fundamental and technical factors. The northeast markets, such as Boston and New York City, have limited pipeline capacity for natural gas to flow into these markets.
When winter demand for natural gas reaches a point where there isn’t enough capacity on the pipelines to move the needed commodity to market, pipelines will reach max capacity and experience constraints. When this occurs, demand must be met by additional sources for supply.
One alternative is to use Liquid…
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