Natural gas weekly prices are down and that’s with the record temperatures we’re experiencing in Texas and other parts of the South and Midwest. We’re entering what is usually the weakest period of the year for prices. Usually, the bottom is somewhere around Labor Day and demand picks up as cooler weather comes into the Northeast. We’re below $4 per mcf, and as long as demand stays strong we’ll be looking at better prices once winter gets here. That’s with the hopes that natural gas production doesn’t continue its path of growth. Production has been relatively flat the past few months, but more production might mean we should get used to sub $4.
- Natural gas prices across the country declined this week, as relief from the high temperatures earlier this month continued to lessen air conditioning load. The Henry Hub spot price fell 12 cents from $4.09 per million Btu (MMBtu) last Wednesday, August 10, to $3.97 per MMBtu yesterday, August 17, falling below $4 for the first time since March of 2010. Prices at numerous points across the country also averaged below $4 yesterday.
- At the New York Mercantile Exchange, the price of the near-month contract (September 2011) fell by $0.070 per MMBtu, from $4.003 per MMBTU last Wednesday to $3.933 yesterday.