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Natural Gas News: Market Drops

  • The milder weather continues to drive down pricing. As a result, the market has fallen almost $3.00 since Dec. 13. Down from $6.70 to $3.71 on Sunday, Jan. 8.
  • The drop in the market has come despite two of the highest withdrawals of the year, with a withdrawal reported on Dec. 30 of -221 Bcf. Warmer temperatures are projected to drop the price in the prompt month and the future. Forecasters expect the warmer temps to last until the last week in January.
  • The drop in Natural Gas pricing has also helped to bring down electricity pricing. As a result, wholesale power pricing for the region has dropped $10.00 per MWh in the last three days.

Auction Time

First Energy’s second auction for electricity that will be part of their supply is scheduled for Jan. 10. With the recent slide in Natural Gas pricing, expect it to come in below the price from the last auction, which was 12.23 cents per kWh.

12-MONTH STRIP, ATC POWER PRICES

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12 month ATC power prices

NATURAL GAS STORAGE REPORT

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Natural Gas Storage Report EIA

THE MARKET CONTINUES TO DROP ON MILD FORECASTS THROUGH JANUARY.

THE MARKET IS AT ITS LOWEST POINT SINCE SEPT. 1, 2021.

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Henry Hub Pricing Natural Gas

February pricing has dropped almost $3.00 since Dec. 13, and yesterday reached the lowest point since Sept. 1 of 2021.

The mild temperatures stuck around the Central and Eastern parts of the U.S. are now projected to be here through the end of January. This has lowered demand and caused the market to drop, despite the last two storage reports having withdrawals of over 200 Bcf.

The delay in re-opening the Freeport LNG facility has kept 2-2.6 Bcf a day in domestic storage.

What Is Henry Hub?


Henry Hub is a natural gas pipeline located in Erath, Louisiana, that serves as the official delivery location for futures contracts on the New York Mercantile Exchange (NYMEX).

HIGHER THAN AVERAGE TEMPS TO STICK AROUND UNTIL EARLY FEBRUARY

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Weather Map