Natural Gas prices are set by regional supply/demand

[dan_s]

Northeast natural gas prices strengthened for weekend delivery amid forecasts for incremental demand gains on top of a roughly 10 Bcf/d increase seen in recent days. Gas prices at major demand centers in New England and New York rose by upwards of $3.75/MMBtu for Jan. 4-6 flow, as prices at both Algonquin city-gates and Tennessee, zone 6 topped $13/MMBtu in Jan. 3 trading.

Regional demand in the Northeast closed out 2024 around 24 Bcf/d on Dec. 31, S&P Global Commodity Insights data shows, and it climbed to 34.8 Bcf/d Jan. 3. Colder weather may cause regional demand to top out as high as 40.5 Bcf/d by Jan. 9, based on current forecasts.

From now until January 31st I expect total U.S. natural gas in storage to decline by 1.5 to 2.0 Bcf per hour.