As winter’s chill fades away, natural gas prices in all four observed North American markets dropped in March 2014. On the Intercontinental Exchange (ICE), North American natural gas spot prices experienced fewer fluctuations compared to February 2014. Monthly average prices fell in Transco Zone-6 in New York by 26% to $10 USD/MMBtu, in California’s PG&E Citygate by 23% to $5 USD/MMBtu, in Henry Hub by 21% to $5 USD/MMBtu, and in Chicago Citygates by 7% to $17 USD/MMBtu.
For the week ending March 19, 2014, EIA’s Natural Gas Weekly Update reported that gas spot prices fell in most market locations during the report week—a result of demand declining from the strong weather-related levels of the previous week.1 Also, total supply increased by 0.3% in the third week of the month, while the storage draw fell below market expectations of 59 Bcf for the same period.1 Historically, the price at the Chicago Citygate hub traded similarly to the Henry hub price, but things were a little different this winter. The spread between the two price series significantly increased because of cold weather and pipeline constraints that affected the Midwest more than the Gulf Coast.