Natural gas spot prices in the Lower 48 States this report week
declined to their lowest levels this year even as disruptions in
offshore Gulf of Mexico production continue in the aftermath of
Hurricanes Ike and Gustav. During the report week, the Henry Hub spot
price decreased $0.83 per million Btu (MMBtu) to $6.58.
At
the New York Mercantile Exchange (NYMEX), the price of the near-term
contract (November 2008) decreased to its lowest price since September
2007, closing at $6.742 per MMBtu yesterday (October 8). The net change
during a week in which the price decreased each trading day was $0.986
per MMBtu.
As of Friday, October 3, working gas in
underground storage totaled 3,198 billion cubic feet (Bcf), which is
2.2 percent above the prior 5-year (2003-2007) average.
The
price of crude oil declined steeply, decreasing 9.5 percent during the
report week to below $90 per barrel for the first time since February
7. The West Texas Intermediate (WTI) price yesterday averaged $88.91
per barrel, or $15.33 per MMBtu, which was $9.32 per barrel lower than
the previous Wednesday.
Continued....
