The typical month-to-month wholesale spot pure fuel worth on the U.S. benchmark Henry Hub fell by 20% to $2.56 per million British thermal items (MMBtu) between January and June of this yr, in line with information from Refinitiv Eikon. In January, the Henry Hub worth averaged $3.18/MMBtu, then dropped to $1.49/MMBtu in March, marking the bottom common month-to-month inflation-adjusted worth since a minimum of 1997. Costs declined all through a lot of 2023 amid document U.S. pure fuel manufacturing and flat consumption.
A gentle winter rounded out 2023, resulting in even decrease costs in early 2024. U.S. dry pure fuel manufacturing averaged 106 billion cubic toes per day (Bcf/d) in November and December—the best ever produced—when warmer-than-usual temperatures meant much less pure fuel was consumed for house heating. Nevertheless, pure fuel manufacturing decreased within the first half of 2024, following a decline in mid-January resulting from traditionally low costs.
Complete dry pure fuel manufacturing fell to 101.6 Bcf/d in April, the bottom since December 2022’s 100.2 Bcf/d.
Pure fuel costs attain decade-low
Because of this, much less pure fuel has been injected into U.S. storage than common this injection season (April–October), with Might and June injections averaging 11% and 31% beneath their respective five-year averages. Nevertheless, inventories stay above their earlier five-year vary.
As manufacturing has decreased and inventories are nearing the vary of the earlier 5 years, costs have elevated from February and March however stay close to historic lows. In keeping with the Nationwide Oceanic and Atmospheric Administration, December 2023 was the warmest December in lots of U.S. areas, and December is when most households usually use pure fuel for house heating. In December 2023, pure fuel consumption within the residential and industrial sectors averaged 34 Bcf/d, 19% lower than December year-ago ranges.
Due to excessive manufacturing and flat consumption, much less pure fuel was withdrawn from storage inventories this winter. In keeping with the Weekly Pure Gasoline Storage Report, over the winter 2023–24 heating season (November 1–March 31), U.S. working pure fuel inventories averaged 13% greater than the year-ago common and almost 18% greater than the five-year (2019–23) common. Comparatively full storage contributed to decrease pure fuel costs over this heating season.
In the latest report for the week ending July 12, 2024, 17% extra pure fuel was in working U.S. storage than the earlier five-year common for this time.