Henry Hub prices posted only slight increases over the week. Although projections of significantly cooler temperatures in the Midwest and other portions of the country likely caused prices to rise at all points but one on Monday, they retreated at most points on Tuesday and Wednesday, with the Henry Hub price closing the report week out at $3.58 per MMBtu, only a slight increase over last Wednesday’s $3.54 per MMBtu. Monday’s rally saw gains at the Chicago citygate, Transcontinental’s Zone 6 (Transco Z6) point for delivery into New York, and the Henry Hub of 29, 31, and 23 cents, respectively. Although prices at Transco Z6 and the Henry Hub subsequently declined, the Chicago citygate price remained high, closing yesterday 2 cents above Monday’s closing price, likely due to forecasts of cold weather.
Overall demand increases over the week were offset by declines in gas consumed for electricity generation. Power burn fell by 2.9 percent over the week according to estimates from BENTEK Energy Services, LLC. The drop was mostly a result of declines in Texas and the Southeast, where cooler temperatures likely caused the pullback in demand. Increases in the other sectors more than offset the power generation declines, and total consumption, as reported by BENTEK, increased by 5.5 percent over the report week.