Natural gas prices have fallen at all market locations in the Lower 48 States since last Wednesday due to springtime temperatures in most areas. Springtime temperatures reduced natural gas demand. For the week (Wednesday to Wednesday), the spot price at the Henry Hub dropped 62 cents per million British thermal units (mmBtu), or about 9 percent, to $6.49. Despite the decrease in price, $6.49 is 28 cents, or 4.5 percent, above last year's level of $6.21. Since the price of crude oil exceeds last year's level by more than 29 percent, it is probably one of the principal contributing factors sustaining the higher price levels of natural gas.
The amount of natural gas in storage in the East Region increased 3.3% for the week ending April 29 to 657 billion cubic feet which was 100 billion cubic feet above the 5-year average. Nebraska is a part of the East Region (see map) which is a major natural gas consumer, particularly in the residential and commercial sectors. The industrial sector, which includes agriculture, is also a major consumer in this state. Most of the gas is supplied from the Producing Region with a fair amount imported from Canada. The Henry Hub in southern Louisiana is a major market center with interconnections for many of the pipelines that transport U.S.-produced gas to the East Region. Furthermore, the Henry Hub is the preferred reference point for prices for most of the domestic gas destined for the East. Therefore, market conditions and developments in the East Region and price movements and trends at the Henry Hub are usually highly correlated.
Notes: An archive is available. Divide the price by ten (10) to obtain the price per hundred cubic feet (ccf) or the approximate price per therm.