EIA: U.S. Gas Prices Near Ten Year Lows During Winter 2011-2012
The U.S. Energy Information Administration (EIA) said in a report that natural gas prices continued their downward trend this winter as a result of continued high production levels, mild weather limiting heating demand, and robust storage.
On March 31—the end of what is considered winter for the natural gas market—spot natural gas prices at the Henry Hub approached $2 per million British thermal units (MMBtu).
On April 18, the natural gas spot price at Henry Hub was $1.87/MMBtu. Storage levels were 2,479 billion cubic (Bcf) for the week ending March 30, more than 60% above the five-year average for that week.
U.S. population-weighted heating degree days were 18% below normal from November through March, reducing estimated, average residential and commercial natural gas demand by over 6 billion cubic feet per day (Bcfd) compared to the previous five-year average.
LNG World News Staff, April 20, 2012; Image: EIA