The U.S. Energy Information Administration said natural gas prices have continued their downward trend this winter as a result of warmer-than-normal temperatures, ample natural gas in storage, and growing production.
Population-weighted heating degree days since November 1, 2011 are down 12% nationally from the 30-year average. For the week ending January 20, working natural gas in storage states was 3.098 Tcf, 21% above the levels of a year ago. Dry gas production averaged about 64.2 Bcfd in January, up almost 10% from last January.
At the benchmark Henry Hub in Louisiana, the spot price of natural gas declined 29 cents to US$2.32/MMBtu during the week that ended Feb. 1, according to the EIA. At the New York Mercantile Exchange, the March 2012 contract dropped from US$2.76/MMBtu to US$2.38/MMBtu on Feb. 1.
For more information: http://www.eia.gov