Mild temperatures lead to modest price declines. Prices remained relatively low at most market locations during an uneventful week with mild temperatures and relatively low demand from both the heating and cooling sectors in most regions. Henry Hub spot prices fell from $2.67/MMBtu last Wednesday to $2.58/MMBtu yesterday, and price movements across much of the country were similar. At the Chicago Citygate, prices fell from $2.60/MMBtu last Wednesday to $2.54/MMBtu yesterday, hitting a weekly low of $2.48/MMBtu on Friday. At the PG&E Citygate in San Francisco, prices fell from $2.91/MMBtu last Wednesday to $2.86/MMBtu yesterday.

Northeast prices fluctuate. Prices in the Northeast fell week over week, dropped more than other areas, and traded in a broader range. Prices at the Algonquin Citygate, which serves Boston, began the week at $3.58/MMBtu last Wednesday, rose to $3.82/MMBtu the next day, then ended the week at $2.60/MMBtu. At Transcontinental Pipeline's Zone 6 trading point for New York City, prices began the week at $2.73/MMBtu, fell to $1.83/MMBtu on Friday, then ended the week at $2.26/MMBtu.

Marcellus prices remain low. Prices at most Marcellus locations declined this week. At Tennessee's Zone 4 Marcellus trading location, prices dropped from $1.51/MMBtu last Wednesday to $1.43/MMBtu yesterday. On the Transco Leidy Line, prices fell from $1.67/MMBtu last Wednesday to $1.49/MMBtu yesterday. At the Dominion South trading point, which serves customers in portions of Pennsylvania, Ohio, Maryland, West Virginia, and Virginia, prices fell from $1.73/MMBtu to $1.50/MMBtu.

Nymex prices flat. The near-month (May 2015) Nymex contract fell from $2.619/MMBtu last Wednesday to $2.610/MMBtu yesterday. The contract dropped to $2.511/MMBtu on Friday before mostly recovering its losses at the end of the report week. The 12-month strip (the average of the 12 contracts between May 2015 and April 2016) fell from $2.895/MMBtu last Wednesday to $2.864/MMBtu yesterday.

Total supply remains flat. Total supply this week was flat over last week, but 8.8% greater than the same week last year. Dry production declined by 0.1% week over week, but was 7.8% greater than the same time last year. Imports from Canada increased 2.4% week over week, with a 15.6% increase occurring in the Midwest. LNG sendout remained at minimal levels, making up a fraction of a percent of total supply.

Consumption declines. Total consumption fell by 3.8% week over week, with declines coming in the industrial and residential/commercial sectors. Industrial consumption fell by 1.3%, while residential/commercial consumption fell by 13.1% as temperatures warmed up. Power consumption increased 3.9%, likely reflecting small amounts of cooling demand.