For the week (Wednesday to Wednesday), the spot price at the Henry Hub jumped 86 cents, or almost 14 percent, to $7.22 per million British thermal units (mmBtu) due to higher demand to meet air-conditioning needs which resulted from higher temperatures. The price could also be due in part to reports of this year's first tropical storm forming in the Caribbean. Although Tropical Storm Arlene's path is uncertain, as of Wednesday the National Hurricane Center expected the storm to take a course east of offshore production in the Gulf of Mexico. The Henry Hub price was at its highest level since April 25, 2005. The price was also $1.03, or 17 percent, above last year's level of $6.19.
The amount of natural gas in storage in the East Region increased 8% for the week ending June 3 at 927 billion cubic feet which was 111 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.