From the Energy Information Administration:
....Prices/Supply/Demand:
Prices fall at most locations amid mild autumn temperatures. This report week (Wednesday, October 28 to Wednesday, November 4), the Henry Hub spot price fell 46¢ from a high of $3.06/MMBtu last Wednesday to a low of $2.60/MMBtu yesterday. Temperatures were generally cooler than normal east of the Mississippi River and warmer than normal in the west. At the Chicago Citygate, the price decreased 65¢ from a high of $3.04/MMBtu last Wednesday to a low of $2.39/MMBtu yesterday.
Tropical Depression Eta lingers in the Caribbean Sea. After making landfall as a Category 4 hurricane on Tuesday afternoon in Central America, the National Oceanic and Atmospheric Administration (NOAA) continues to track Tropical Depression Eta in the Gulf of Mexico. As of this morning, the Bureau of Safety and Environmental Enforcement (BSEE) has not issued status reports on U.S. oil and natural gas operators for this storm.
California prices are mixed. The price at SoCal Citygate in Southern California increased $2.13 from $3.63/MMBtu last Wednesday to $5.76/MMBtu yesterday after reaching a high of $5.86 on Tuesday amid warmer-than-normal temperatures. The price at PG&E Citygate in Northern California fell 6¢, down from a high of $4.11/MMBtu last Wednesday to $4.05/MMBtu yesterday.
Northeast prices end week lower than Waha Hub price. At the Algonquin Citygate, which serves Boston-area consumers, the price went down $4.00 from $4.84/MMBtu last Wednesday to a low of $0.84/MMBtu yesterday after reaching a high of $6.54 last Thursday. At the Transcontinental Pipeline Zone 6 trading point for New York City, the price decreased $1.74 from $2.38/MMBtu last Wednesday to a low of $0.64/MMBtu yesterday. These large price decreases were the result of almost 20-degreee temperature increases in the Northeast late in the report week that contributed to declines in residential and commercial natural gas consumption. Another contributing factor to the price decrease was the November 1 announcement by Texas Eastern Transmission (TETCO) that maintenance between the Holbrook and Uniontown compressor stations in Pennsylvania was completed, allowing capacity to return to its normal operating capacity of about 4.5 Bcf/d (an increase of about 1.8 Bcf/d).
The Tennessee Zone 4 Marcellus spot price decreased $1.26 from $1.70/MMBtu last Wednesday to $0.44/MMBtu yesterday. The price at Dominion South in southwest Pennsylvania fell $1.36 from $1.88/MMBtu last Wednesday to $0.52/MMBtu yesterday.
Permian Basin discount to the Henry Hub widens slightly. The price at the Waha Hub in West Texas, which is located near Permian Basin production activities, averaged a high of $2.91/MMBtu last Wednesday, 15¢/MMBtu lower than the Henry Hub price. Yesterday, the price at the Waha Hub averaged $2.39/MMBtu, 21¢/MMBtu lower than the Henry Hub price. S&P Platts report that strong liquefied natural gas (LNG) feedgas demand has boosted Permian spot prices recently.
Supply rises because of increased production. According to data from IHS Markit, the average total supply of natural gas rose by 1.9% compared with the previous report week. Dry natural gas production grew by 1.5% compared with the previous report week. Average net imports from Canada increased by 8.0% from last week.
Demand rises, driven by LNG exports and heating demand in buildings. Total U.S. consumption of natural gas rose by 1.4% compared with the previous report week, according to data from IHS Markit. Natural gas consumed for power generation declined by 12.2% week over week. In the residential and commercial sectors, consumption increased by 20.4% amid cooler-than-normal temperatures on the East Coast. Industrial sector consumption increased by 1.4% week over week. Natural gas exports to Mexico decreased 6.9%. Natural gas deliveries to U.S. LNG export facilities (LNG pipeline receipts) averaged a record high of 10.1 Bcf/d, or 1.1 Bcf/d higher than last week.
U.S. LNG exports increase week over week. Twenty-two LNG vessels (nine from Sabine Pass, four each from Corpus Christi and Freeport, three from Cameron, and two from Cove Point) with a combined LNG-carrying capacity of 82 Bcf departed the United States between October 29 and November 4, 2020, according to shipping data provided by Bloomberg Finance, L.P....
....MUCH MORE, including "As solar-powered generation increases in California, natural gas helps meet evening peak demand"
Front futures down another 1% to 2.9150.
