Preliminary data from the US Energy Information Agency (EIA) indicate that average gas prices on the US spot markets were significantly higher in 2014 compared to 2013, due to colder-than-normal temperatures between January and March 2014. At US$4.37/MMBtu in 2014, the Henry Hub price was 17% above its 2013 level (US$3.73/MMBtu, with +20% or more at most trading locations in the United States.
In the first quarter, cold temperatures raised residential and commercial consumption and boosted gas withdrawals from underground gas storages; coupled with pipeline constraints into the Northeast, prices reached records in New York and New England. Gas consumption was limited during the summer due to mild temperatures (reduced demand for air conditioning limiting gas consumption from the power sector), enabling massive injections in gas storages and leading to a sharp drop in US gas spot prices. In late 2014, moderate temperatures and high storage levels contribute to keep gas prices at a low level.
Interested in Global Energy Research?
Enerdata's premium online information service provides up-to-date market reports on 110+ countries. The reports include valuable market data and analysis as well as a daily newsfeed, curated by our energy analysts, on the oil, gas, coal and power markets.
This user-friendly tool gives you the essentials about the domestic markets of your concern, including market structure, organisation, actors, projects and business perspectives.