Pumpjacks draw out oil and gas from wellheads near Calgary on Friday, April 28, 2023. North American natural gas prices continued their downward slide this week, in spite of the frigid winter conditions that gripped much of the continent.THE CANADIAN PRESS/Jeff McIntosh
CALGARY – North American natural gas prices continued their downward slide this week, in spite of frigid winter conditions that gripped much of the continent.
The U.S. natural gas benchmark Henry Hub has fallen six per cent over the last week, trading Friday at around US$2.53 per million British thermal units, or mmBTU.
It’s a continuation of last year’s downward trend. U.S. natural gas prices averaged $2.57 per mmBTU in 2023, about 62 per cent below the 2022 average annual price.
Weather is typically a major factor in the price of natural gas, as demand is driven by the need to heat homes and businesses.
But while many regions are currently experiencing a blast of cold weather, analysts say fall and early winter were unusually warm which is keeping natural gas prices low.
Last year was a warm winter too across most of North America, and less demand contributed to rising amounts of natural gas inventories in storage.
This report by The Canadian Press was first published Jan. 19, 2024.
