The market has stabilized this week amid typical seasonal temperatures and a strong injection into natural gas storage. This comes on the heels of observing the largest week-over-week forward average pricing increase in nearly 3 months.
Temperatures this week were closer to normal, if not a bit above average. There was minimal volatility in the spot pricing market. Temperatures are expected to remain near normal over the coming weeks which should keep spot markets stable.
Natural Gas Markets
Forward rates remain optimal well into the future. However, 2025 forward rates have begun a slow increase and will be something to watch in the coming weeks as we head into the cooling season.
Futures as of 3/9/2023 versus previous week:
Natural Gas Inventory
Working gas in storage was 2,030 BCF as of Friday, March 3rd, according to EIA estimates. This represents a net decrease of 84 Bcf from the previous week.
The Baker Hughes exploration gas decreased by 1 rig for a total of 153 this week. There are 130 additional rigs in operation than at this time one year ago.
Temperatures across most of the country continue to be below average.
Hurricane Watch: Click here to view the National Hurricane Center site.
News : Mild weather slashes US EIA gas consumption, Henry Hub price forecasts for 2023- US natural gas consumption in early 2023 dipped below any first quarter since 2018 amid mild temperatures and reduced space-heating use, the US Energy Information Administration said March 7, as it pared back Henry Hub spot gas price forecasts for 2023.
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