Cold Weather Met by Colder Gas Prices
January 06, 2020
Eight weeks into the winter heating demand season (Nov-Mar) and population-weighted Heating Degree Days (HDDs) are 13% above the 10-year average. Henry Hub NYMEX spot natural gas prices have dropped $0.44/mmbtu since the season began. One year ago this week, prices were $0.50/mmbtu higher, but gas in storage was at a 17% deficit to the five-year average. Heading into this winter, there was a surplus to the five-year average and about 18% more gas in the ground versus last year.