For the week (Wednesday to Wednesday), the spot price at the Henry Hub increased only 1 cent to $7.40 per million British thermal units (mmBtu). Since last Wednesday, the price had been rising nearer to $8 but backed off on Tuesday and Wednesday as cooler weather and a retreat from recent highs in petroleum eased the upward pressure. The Henry Hub price was $1.18, or 19 percent, above last year's level of $6.22.
The amount of natural gas in storage in the East Region increased 5.3% for the week ending June 17 at 1,028 billion cubic feet which was 92 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.
