Henry Hub Each day Pure Fuel Spot Worth Fell to Document Lows in February – Insta News Hub

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The U.S. benchmark Henry Hub each day pure gasoline worth averaged $1.50 per million British thermal items (MMBtu) on February 20, 2024, the bottom worth in inflation-adjusted {dollars} since a minimum of 1997, in keeping with data from Refinitiv Eikon. Excessive pure gasoline manufacturing, low pure gasoline consumption, and better pure gasoline inventories than the previous five-year (2018–22) average contributed to costs declining for much of 2023 and the primary two months of 2024.

U.S. dry pure gasoline manufacturing typically rose all through 2023, averaging a document excessive of 105.7 billion cubic ft per day (Bcf/d) in December 2023, in keeping with knowledge from S&P International Commodity Insights. Following a brief decline in manufacturing in mid-January as a result of winter storm Heather, manufacturing has remained comparatively excessive since January 26, averaging over 104.1 Bcf/d. Pure gasoline consumption within the U.S. residential and business sectors to this point this winter heating season (November 1, 2023–March 31, 2024) averaged about 5% (2.0 Bcf/d) decrease than the five-year (2019–23) common, at 35.8 Bcf/d.

Due to excessive manufacturing and comparatively low consumption, much less pure gasoline has been withdrawn from storage this winter. For the week ending February 16, U.S. working pure gasoline inventories averaged 12% above the year-ago common and almost 22% above the five-year (2019–23) common, in keeping with our Weekly Natural Gas Storage Report. Comparatively excessive storage ranges point out an oversupplied market and contribute to decrease pure gasoline costs.

Since February 7, the Henry Hub each day pure gasoline worth has been under $2.00/MMBtu, reaching its lowest worth on February 20; six of the record-low each day costs when adjusting for inflation occurred this month. The final time the Henry Hub worth was this low was in 2020, when it averaged $2.05/MMBtu for the year. In 2020, low costs have been largely because of the financial results of the COVID-19 pandemic, together with low pure gasoline consumption, and the gentle 2019–20 winter, which ended with relatively high natural gas storage inventories.

Principal contributors: Andrew Iraola, Katy Fleury, Max Ober

Courtesy of U.S. EIA.