According to the weekly EIA report, in the week ending February 14, 2024, the energy market witnessed notable fluctuations across various segments. Natural gas prices experienced a significant decline, with the Henry Hub spot price falling to $1.51/MMBtu, marking the lowest inflation-adjusted monthly average since at least January 2000. Similarly, the Henry Hub futures price decreased to $1.609/MMBtu, contributing to an overall downtrend in natural gas prices.
Natural gas prices experienced a significant decline, with the Henry Hub spot price falling to $1.51/MMBtu, marking the lowest inflation-adjusted monthly average since at least January 2000.
Regional spot prices demonstrated diverse movements, reflecting the impact of temperature fluctuations and demand-supply dynamics, with prices in the Northeast particularly volatile.
Supply and demand dynamics played a crucial role, with total U.S. consumption of natural gas decreasing slightly by 2.0%, while natural gas exports to Mexico and LNG terminals witnessed increases.
Regional spot prices demonstrated diverse movements, reflecting the impact of temperature fluctuations and demand-supply dynamics. Prices in the Northeast were particularly volatile, with the Algonquin Citygate experiencing a notable increase to $3.34/MMBtu, while prices in Texas and the Midwest also witnessed declines. Despite these fluctuations, prices across regions remained historically low for this time of year, indicating a prevailing trend of market softness.
Supply and demand dynamics played a crucial role in shaping market conditions. While total U.S. consumption of natural gas decreased slightly by 2.0%, driven by lower residential and commercial sector demand, natural gas exports to Mexico and LNG terminals witnessed increases. Additionally, LNG-related activities saw growth, with average natural gas deliveries to U.S. LNG export terminals increasing by 3.8% week over week, albeit with regional variances.
Storage trends indicated a net withdrawal of 49 Bcf, below the five-year average, contributing to an overall surplus compared to historical data. Meanwhile, the natural gas rig count witnessed a modest increase, reflecting ongoing activity in key producing regions such as the Haynesville, Marcellus, and Permian basins.
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