Natural gas demand reached near-record levels in January, averaging 21.1 Billion Cubic Feet (Bcf) per day. This is the highest daily average demand since the 2014 polar vortex. February’s demand is nearing a multi-year record as month-to-date demand is averaging 19.7 Bcf/d. This is an increase of 1.25 Bcf/d from February 2017 and about 1 Bcf/day higher than the prior 5-year average.
Mid-continent prices have remain stable over the past couple of months amid the high demand for natural gas. January’s average daily index price was $2.81/MMBtu. February is currently averaging $2.51/MMBtu. In 2014 Mid-con daily index prices sky-rocketed above $30.00/MMBtu. Increased natural gas supply volumes from the Appalachia production basins in the Northeast have limited volatility in daily prices and kept Mid-con prices stable.