On the Intercontinental Exchange (ICE), natural gas prices dropped in July as mild weather surrounded the country. According to ICE data, New York’s Transco Zone-6 experienced the largest fluctuations and was also the cheapest among all the observed cities in July 2014. On ICE, monthly average gas prices dropped in New York’s Transco Zone-6 by 13% to $2.93 USD/MMBtu, in Chicago Citygates by 11% to $4.16 USD/MMBtu, in Henry Hub by 11% to $4.08 USD/MMBtu, and in California’s PG&E Citygate by 8% to $4.74 USD/MMBtu.
For the week ending July 23, 2014, EIA’s “Natural Gas Weekly Update” reported that natural gas spot prices dropped to their lowest levels in eight months due to cooler weather. The mild weather impacting the country throughout July 2014 has put downward pressure on prices, as milder temperatures are associated with tepid demand. EIA also reported from Bentek Energy that for the same week ending, dry natural gas production increased by 0.3 Bcf/d, hitting record high levels of 69.1 Bcf on July 21, 2014.In brief, cooler temperatures along with large storage builds supported lower prices in July.
Data Sources: ICE