for week ending July 5, 2007 | Release date: July 6, 2007 | Previous weeks
Overview: Friday, July 6, 2007 (next release 2:00 p.m.
on July 12, 2007)
Natural
gas spot prices decreased sharply this week (Wednesday-Thursday, June 27-July
5), although crude oil prices continued to trade at near-record high levels.
For the week, the price at the Henry Hub decreased $0.45 per MMBtu, or about 7
percent, to $6.29. At the New York Mercantile Exchange (NYMEX), the price of
the futures contract for August delivery at the Henry Hub moved 47 cents per
MMBtu lower to settle yesterday (Thursday, July 5) at $6.618. Natural gas in
storage was 2,521 Bcf as of Friday, June 29, which is 16.9 percent higher than
the 5-year average. Crude oil prices continued to rise this week. The
spot price for West Texas Intermediate (WTI) crude oil increased $2.83 per barrel
or about 4 percent since last Wednesday (June 27) to trade yesterday at $71.81
per barrel or $12.38 per MMBtu.
Spot prices decreased this week in nearly all trading
regions in the Lower 48 States. The exceptions to the widespread price decreases
occurred in the California and Rocky Mountain regions, where 80-degree and
higher temperatures lingered for much of the report week, driving an increase
in space-cooling load. In the Rockies, prices responded to the hot temperatures
by increasing $0.43 per MMBtu on average for the region, resulting in an
average regional price of $5.02 per MMBtu yesterday. Prices in California also
moved up on the week, albeit slightly less so than in the Rockies, increasing
by an average of 9.5 cents. In the remaining regions of the Lower 48 States,
moderate temperatures and holiday-induced lower industrial load resulted in
spot price decreases that ranged between 6 cents and $1.29 per MMBtu. The Henry
Hub spot price decreased 45 cents or 6.7 percent, yesterday averaging $6.29 per
MMBtu, which was the second-lowest Henry Hub price since April 2007, exceeding only
the $6.24 per MMBtu price recorded this past Monday (July 2). Overall, prices
at the other trading points in Louisiana decreased by an average of 53 cents to
reach a regional average of $6.25 per MMBtu. Trading locations elsewhere along
the Gulf Coast recorded average price decreases between 57 and 71 cents per
MMBtu, or 8.6 and 9.8 percent. This
week's largest declines occurred at market locations in the Northeast, where
prices declined by an average of $0.92 per MMBtu. The price for gas off the
Transcontinental Gas Pipeline into New York City recorded the largest weekly
decrease of all trading locations in the Lower 48 States, falling by $1.29 per
MMBtu to $6.84. Despite the large decline, the average regional price in the
Northeast was the highest in the Lower 48 States.Bidweek prices also reacted to the relatively
mild weather, as well as the price movements of the futures market. According
to the results of the bidweek survey, the Henry Hub price averaged $6.93 per
MMBtu, while prices at the Transcontinental Pipeline (New York) averaged $7.72
per MMBtu. The Rocky Mountain region's bidweek prices averaged $4.35 per MMBtu.
Estimated Average Wellhead Prices |
||||||
|
Dec-06 |
Jan-07 |
Feb-07 |
Mar-07 |
Apr-07 |
May-07 |
6.65 |
5.92 |
6.66 |
6.56 |
6.84 |
6.98 |
|
Price ($ per MMBtu) |
6.48 |
5.76 |
6.48 |
6.39 |
6.66 |
6.80 |
Note: Prices were converted from $ per Mcf to $ per
MMBtu using an average heat content of 1,027 Btu per cubic foot as published
in Table A4 of the Annual Energy Review 2002. |
||||||
Source:Energy
Information Administration, Office of Oil and Gas. |
Working
gas in underground storage was 2,521 Bcf as of June 29, which is 16.9 percent
above the 5-year average inventory level for the report week, according to
EIA's Weekly Natural Gas Storage Report (see Storage Figure). The implied net injection for the week was 78
Bcf, which is 9 percent lower than the 5-year average net injection of 86 Bcf
but about 8 percent higher than last year's net injection of 72 Bcf. Current
inventories continue to remain below last year's level, however the difference
declined for the 10th straight week, falling to 84 Bcf from 276 Bcf as of April
20. Warmer-than-normal temperatures that engulfed most of the Lower 48 States
during the report week and the resulting increased cooling load contributed to
the lower than average injection. The latest cooling degree-day (CDD)
statistics published by the National Weather Service for the period roughly
coinciding with the week covered by this storage report indicate that the
temperatures in the Lower 48 States were 8 percent warmer than normal (see
Temperature Maps), but about 7 percent cooler than last year
for the same week. All Census Divisions with the exception of the West South
Central had warmer-than-normal temperatures, as measured by CDDs.CDDs in most Census Divisions were more than
10 percent higher than normal.
EIA Releases a New Report on
Natural Gas Marketer Prices:On June 29, the Energy Information
Administration (EIA) released the report Natural
Gas Marketer Prices and Sales to Residential and Commercial Customers:
2002-2005, which compares data
on residential and commercial prices collected from natural gas marketers and
local distribution companies (LDC) between 2002
and 2005.In
2001, EIA developed the EIA-910, "Monthly Natural Gas Marketer Survey," which
was designed to collect price and volume information on natural gas sales by
marketers selling to residential and/or commercial customers in States with
active customer choice programs. EIA
initiated the survey for marketers in five States (Georgia, Maryland, New York,
Ohio, and Pennsylvania). This report provides details on the
collection and analysis of data from natural gas marketers and LDCs in Maryland,
New York, Ohio, and Pennsylvania.Georgia was not included because most natural gas customers
in the State are required to purchase natural gas from marketers. The analysis of the four States examines
trends and differences observed in marketer and LDC prices collected on the
EIA-910 and the EIA-857, "Monthly Report of Natural Gas Purchases and
Deliveries to Consumers. "The
report also includes analysis of data from the EIA-176, "Annual Report of Natural and Supplemental Gas Supply and
Disposition," which shows the percentage
of residential and commercial natural gas sales by marketers, as well as
the accompanying percentage of residential and commercial customers purchasing
natural gas from LDCs in the same period.
Natural Gas Transportation Update: