Vicinity
Summary
Last year saw drastic changes in the natural gas market, from the ongoing war in Ukraine to record high energy prices to fluctuating natural gas inventories.
As we reported in our last natural gas outlook, the team at Vicinity is constantly monitoring the state of the fuel markets. United States natural gas spot prices saw lower prices throughout the country during the first two months of 2023, as mild weather patterns brought overall gas use to a five-year low of 110.65 Bcf/d for the two-month period.
U.S. temperatures averaged 42.8°F between January and February this winter, the third-highest average in the last 17 years. At the start of the winter season, the mild weather caused gas prices to reduce significantly, reaching pre-COVID-19 levels with the winter November 2023 through March 2024 time period now trading at an almost 38% decrease compared to highs seen for the corresponding months in 2022.
In this market update, we want to update you on what drove this price reduction, the state of global and domestic gas storage today, and predictions for the rest of the year.
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