U.S. Industry Metrics

On January 24, the near-month natural gas Henry Hub futures price at the New York Mercantile Exchange closed at $1.893/MMBtu, the lowest January closing price for the near-month contract since January 27, 1999. Warm weather, leading to reduced withdrawals from underground storage, combined with record natural gas production, depressed natural gas prices in future and spot markets during the beginning of the year. In addition to warmer weather, natural gas withdrawals have been limited as a result of high levels of electric power generation from nuclear power plants during the winter. Natural gas also continues to be produced at near-record levels, contributing to lower gas prices.  GP