U.S. natural gas prices set record high in December

greenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread

U.S. natural gas prices set record high in December Updated 3:23 PM ET January 11, 2001 NEW YORK (Reuters) - U.S. wholesale natural gas prices in December continued their upward spiral into record territory, surging more than 50 percent from the prior month as a steady stream of cold winter air kicked up demand.

Spot gas prices last month at Henry Hub, a key delivery point in Erath, La., at the convergence of several major pipelines, climbed $2.61 to a record $7.74 per million British thermal units (mmBtu), according to price data collected by Reuters.

The level easily eclipsed the previous monthly benchmark of $5.18 set in October 2000, and put the average for the year at a record $4.13, up more than 50 percent from the former yearly record of $2.73 in 1996.

Gas prices have been on a steady climb for more than a year and most analysts said they expected prices to remain above $4.00 in 2001.

Traders attributed the record surge first to sagging gas production early last year, then to concerns over low inventories for winter coupled with a record bout of cold in the November-December period.

Spot prices at Henry Hub have averaged above $4.00 since June.

While moderate weather forecasts this week have pressured prices by more than a dollar from the all-time daily record high of $10.10 hit just two weeks ago, concerns remain about tight gas supplies for winter and many traders said they expected another run to new highs if Arctic weather returns.

Prior to 2000, the highest average monthly price at Henry Hub was $4.06, set in February 1996, during the country's last bitterly cold winter.

Reuters started collecting historical spot price data at Henry Hub in February 1989

http://news.excite.com/news/r/010111/15/energy-natgas-record

-- Martin Thompson (mthom1927@aol.com), January 12, 2001


Moderation questions? read the FAQ