The price of natural gas continues to remain cheap, according to the latest figures posted by the Energy Information Administration (EIA).
The NYMEX Henry Hub energy futures price posted by EIA on Sept. 28 was only $2.56/mmBtu. That reflects a price that is almost $1.41/mmBtu lower than one year ago, according to EIA data.
In addition, nine of the 10 organized markets monitored by EIA showed spot natural gas prices below $3/mmBtu. Three of the regions cited a spot gas price below $2 and the Mid-Atlantic recorded a paltry $1.13/mmBtu.
Natural gas inventories were listed at 3,440 Bcf (billion cubic feet) on Sept. 18 and that’s up 466 Bcf from one year earlier, according to EIA.
RBN Energy said in a Sept. 10 blog post that Northeast producers might be eyeing higher gas production during the fourth quarter in response to seasonally higher prices. Gas prices tend to be higher in the gas winter months (November-March) than in the gas summer months (April-October) and typically peak between December and February.
An abnormally cold winter can cause demand and prices to spike while a mild winter could mean more price weakness, the RBN firm noted.