Midwest, Midcontinent gas decreases as demand falls

摘要

Upper Midwest and Midcontinent natural gas prices decreased on June 11 as there was downward pressure in the market from a fall in demand. The cash price for Consumers city-gate fell 3.5 cents on the day to $1.60/MMBtu. Similarly, the cash price for Dawn fell 3.5 cents on the day to $1.595/MMBtu. There was a bearish sentiment in the market as demand decreased on the day. Upper Midwest demand fell close to 100 MMcf on the day to 8.88 Bcf, according to S&P Global Platts Analytics. Demand is expected to fall further to reach 8.75 Bcf on June 12. Demand is expected to fall for four consecutive days if demand decreases as expected on June 12. Looking ahead, Midwest demand is set to average 9.22 Bcf/d the next two weeks, around 400 MMcf higher than current demand levels, according to Platts Analytics. Turning to storage, Midwest inventories increased 28 Bcf to 662 Bcf for the week ending June 5, according to the US Energy Information Administration. This level is 44% higher than year ago levels and 28% higher than the five-year average.