(Bloomberg) -- The worst of the squeeze on natural gas supplies may have passed as spot prices in Oklahoma plunged 99% on Thursday, according to traders.
Supply for next-day delivery at the Oneok Gas Transportation hub in Oklahoma traded at $10 or less per million British thermal units on Thursday, down from $1,250 on the previous day.
The extreme price swings comes as temperatures rise in Texas following several days of frigid conditions. Data published early on Thursday from state grid operator Ercot showed electricty demand above 50 gigawatts for the first time since Monday, signaling fewer blackouts are needed to keep the system stable. About 525,000 homes and businesses in Texas were without power Thursday morning according to Poweroutage.us, down from more than 3 million on Wednesday.
The drop in Oklahoma prices comes hours after Texas Governor Greg Abbott ordered that gas in the state be offered to state power generators before it can be shipped out of Texas.
Gas futures traded in New York also dropped Thursday, falling as much as 4.4%.
(Updates with Nymex futures in last paragraph)
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