As the calendar turns to March, and with springtime only a few weeks away, spot natural gas prices remain unusually cheap.
Each of the 10 regions tracked by the Energy Information Administration (EIA) listed a spot natural gas price of less than $2/mmBtu on March 1. New England was the most expensive at $1.95 and the Mid-Atlantic was the cheapest at only $1.04.
In addition, the NYMEX/Henry Hub price for April delivery of natural gas is only $1.71/mmBtu, according to the EIA data. By comparison, the same benchmark price in late February 2015 was about $2.69/mmBtu, according to EIA data.
Meanwhile, the Wall Street Journal reported Feb. 29 that major shale producers are starting to scale back oil and natural gas production in light of weak international commodity prices.
Spot power prices also remain soft as the markets enter the shoulder season. Every organized market tracked by EIA listed a spot power price at less than $25/MWh.