Natural gas spot prices in IntercontinentalExchange (ICE) were generally flat or somewhat high, with the exception of the Northeast this month. The natural gas stocks were very high, but that didn’t affect the prices by much due to cooling demand.
Comparing July average monthly prices to June, it is evident that the Henry Hub spot price slightly dropped from $3.87 to $3.69 USD/MMBtu, Chicago did slide from $3.90 to $3.78 USD/MMBtu, while Transcontinental Pipeline’s Zone 6 delivery point saw price increase from $4 to $4.30 USD/MMBtu.
At Trans Z6 and Iroquois prices passed $5.50 USD/MMBtu in mid-July, showing rising prices in this part of the country. Boiling hot temperatures across the Northeast over most of July have boosted natural gas prices as homes and businesses turned on air conditioners and consumed more electricity. The region is a major user of electricity derived from burning natural gas. This also translated into elevated electric power prices for the Northeast.
However, natural gas prices dropped toward the end of July as the temperature did cool down, signaling weakening demand following hot days in July.