Northeast natural gas price movement was mixed in demand markets. Boston’s Algonquin Citygate prices decreased -$0.09 (-3.7%) to $2.35/MMBtu last Wednesday. Transco Zone 6 NYC prices rose slightly, increasing $0.03 (1.3%) from $2.38/MMBtu to $2.41/MMBtu.
The EIA projects average summer 2019 natural gas prices to be the lowest they have been since 1998. Its Short-Term Energy Outlook predicts the average Henry Hub price during June, July and August 2019 to be $2.37/million British thermal units (MMBtu), $0.55/MMBtu lower than the average price during the summer of 2018. Mild weather to begin the summer depressed natural gas-fired generation and allowed net injections and storage inventories to increase, driving natural gas prices down. However, a warmer than projected finish to the summer could increase electricity consumption, natural gas-fired generation, and natural gas prices.
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