Prices decline at most areas outside the Northeast. The Henry Hub spot price fell 12¢ from $2.59/MMBtu last Wednesday to $2.47/MMBtu yesterday. Similarly, at the Chicago Citygate, spot prices fell from $2.65/MMBtu last Wednesday to $2.56/MMBtu yesterday. Prices moved in similar patterns at most market locations other than the Northeast.
Northeast prices fluctuate. At the Algonquin Citygate, which serves Boston-area consumers, prices began the week at $2.00/MMBtu before falling to $1.66/MMBtu on Friday. Prices closed the report week at $1.95/MMBtu. At Transcontinental Pipeline's Zone 6 delivery point into New York City, prices began the week at $2.31/MMBtu, hit a weekly low at $1.53/MMBtu on Friday, and settled at $2.44/MMBtu yesterday.
Marcellus-area prices fall. Most Marcellus-area prices decreased this week. At Tennessee Pipeline's Zone 4 Marcellus trading zone, prices fell from $1.08/MMBtu last Wednesday to 83¢/MMBtu yesterday. On the Transco Leidy Line, prices dropped 29¢ from $1.10/MMBtu last Wednesday to 81¢/MMBtu yesterday. At Dominion South, which serves customers in portions of Pennsylvania, Ohio, Maryland, West Virginia, and Virginia, prices decreased from $1.28/MMBtu to $1.22/MMBtu over the report week.
Nymex prices drop. At the Nymex, the October contract rolled off the board at $2.563/MMBtu on Monday, having lost 15.2¢ during its tenure as the near-month contract. November moved into the prompt-month spot, and ended the week at $2.524, down from $2.638/MMBtu at the start of the report week. The 12-month strip (the average of the 12 contracts between November 2015 and October 2016) fell from $2.818/MMBtu last Wednesday to $2.746/MMBtu yesterday.
Consumption falls slightly. Total consumption fell 1.2% week over week, according to Bentek Energy data. Consumption of natural gas for power generation fell 3.3%, and residential and commercial consumption rose 0.7%. Consumption in the industrial sector rose 0.4% and exports to Mexico rose 1.1%.
Supply is flat. Dry production rose 0.4% this week, while Canadian imports declined 4.7%. Imports fell in both the West and Midwest, and LNG sendout remained at minimal levels.
Hurricane Joaquin approaches East Coast. While forecasts for Hurricane Joaquin do not currently seem to be affecting natural gas markets, the storm could cause decreases in consumption through power outages. On Thursday morning, the category 4 storm was hovering in the Bahamas, and the National Hurricane Center projects that Joaquin could make landfall on the East Coast this weekend. Virginia and New Jersey have declared states of emergency ahead of forecasts for heavy rain on Thursday and Friday.