The natural gas futures price tracked by the Energy Information Administration (EIA) posted another decline in the seven-day period that ended July 10.
The gas futures price posted July 10 was $4.12/mmBtu or about 29 cents lower than the week before. However, the gas futures price is still 44 cents higher than it was a year earlier, according to EIA data.
“We believe the combination of relatively temperate weather, quiet tropics, and continued production of natural gas as a ‘by-product’ of NGLs has led to surprisingly high storage injections and soft gas prices,” said ScottMadden Partner Ed Baker.
“The weakness in Henry Hub prices in the past week are driven by cooler than normal weather forecast that brought down cooling demand for natural gas,” said Wei Chien, a senior natural gas analyst with Genscape.
Natural gas storage inventories were listed at 2,022 Bcf (billion cubic feet) for the period ending July 4. That’s 93 Bcf from week earlier but still 653 Bcf less than a year earlier.
The Wall Street Journal reported July 10 that surging U.S. production of natural gas has eased fears of a price run-up following the so-called “polar vortex” this past winter.