Temperatures have been colder than normal in major gas-consuming markets and have kept space-heating demand strong. Natural gas prices have increased due to strong space-heating demand and rising crude oil spot and futures prices. For the week (Wednesday to Wednesday), spot prices at the Henry Hub increased 59 cents per million British thermal units (mmBtu), or 9.8 percent, to $6.61.
The amount of natural gas in storage in the East Region fell 9% for the week ending February 25 to 838 billion cubic feet which was 164 billion cubic feet above the 5-year average. Nebraska is a part of the East Region (see map) which is a major natural gas consumer, particularly in the residential and commercial sectors. The industrial sector, which includes agriculture, is also a major consumer in this state. Most of the gas is supplied from the Producing Region with a fair amount imported from Canada. The Henry Hub in southern Louisiana is a major market center with interconnections for many of the pipelines that transport U.S.-produced gas to the East Region. Furthermore, the Henry Hub is the preferred reference point for prices for most of the domestic gas destined for the East. Therefore, market conditions and developments in the East Region and price movements and trends at the Henry Hub are usually highly correlated.
Notes: An archive is available. Divide the price by ten (10) to obtain the price per hundred cubic feet (ccf) or the approximate price per therm.