Natural gas prices down over the week. Mild temperatures led to natural gas price decreases at most market locations across the country. The biggest decrease occurred at the Algonquin Citygate, which serves Boston. Prices at Algonquin started the report week last Wednesday at $4.24/MMBtu, and fell $2.29/MMBtu to $1.95/MMBtu heading into the weekend. This was likely driven by temperatures that were forecasted to be in the mid-60 degrees in Boston over the weekend, signaling weak natural gas consumption in the residential and electric sectors. Prices rebounded on Monday, accompanied by warmer temperatures and continuing maintenance outages at Algonquin’s Cromwell Compressor Station. Overall, prices at Algonquin were down $0.90/MMBtu over the report week, settling yesterday at $3.34/MMBtu. A similar pattern of prices falling through the weekend, and marginally rebounding after Monday occurred throughout the Northeast. For example, at Transcontinental Pipeline’s Zone 6 delivery point, which serves New York, prices began the week at $2.24/MMBtu, fell to $1.51/MMBtu on Friday, and ended the report week at $1.98/MMBtu. Prices at both New York and Boston remained below Henry Hub for most days during the report week. Henry Hub spot prices started the week at $4.14/MMBtu but fell off to $3.88/MMBtu yesterday.
Supply up this week. Dry gas production rose 0.5% during the week, according to data from Bentek Energy. Overall supply was up 1.0%, with increases in production further supported by a 7.9% increase in pipeline imports from Canada. LNG imports declined, and remain at minimal levels.
Total demand increases. Total demand was up 5.5% for the week, driven by increases in the industrial and residential sectors. Industrial and residential/commercial consumption rose week-to-week, by 1.3% and 30.1%, respectively, with the residential sector responding to cooler temperatures early in the season. Natural gas used for power generation fell 3.6% this week as most regions experienced lower demand with mild weather. Exports to Mexico declined by 3.4%.
Source: U.S. Energy Information Administration