Break in extreme cold reduces demand as Natural Gas prices decrease throughout the country, especially in the Northeast

Combined consumption in the residential and commercial sectors decreased 23% to 40.2 billion cubic feet per day. This lower demand contributed to widespread and, in many cases, steep declines in prices.

Natural gas in storage fell 233 bcf in the Feb 11 week. A 230 bcf withdrawal was expected.  Via EIA:
A reprieve from extreme cold in much of the country this week limited space-heating demand, contributing to price declines. The biggest price decreases occurred in the Northeast. During the report week (February 9-16), the Henry Hub spot price decreased $0.29 to $3.93 per million Btu (MMBtu).

At the New York Mercantile Exchange (NYMEX), futures prices also decreased. The futures contract for March delivery decreased by $0.12 on the week to $3.92 per MMBtu.

As of Friday, February 11, working gas in underground storage was 1,911 billion cubic feet (Bcf), which is 6.3 percent below the 5-year (2006-2010) average, according to the Energy Information Administration’s (EIA) Weekly Natural Gas Storage Report (WNGSR).

The natural gas rotary rig count decreased by 5 rigs this week to 906, according to data reported on February 11 by Baker Hughes Incorporated. The number of rigs dedicated to drilling for natural gas prospects is currently 15 higher than this time last year.

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