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What’s Affecting Gas Prices? (Week of Jan. 16) | Oil and Gas Investor

Stratas Advisors provides weekly commentary on the key drivers affecting the price of gas.

Key Points: Bloomberg scrapes show us that gas field production was higher by almost 5.2 billion cubic feet (Bcf) for the week. Average weekly demand fell in power generation, residential and commercial and industrial sectors by almost 0.97 Bcf/d. Canadian imports rose by 0.63 Bcf/d or 4.4 Bcf and Mexico exports also rose by 0.58 Bcf/d or 4.1 Bcf so overall the net effect on supply-demand equilibrium was minimal.

Natural gas prices have surged forward since Jan. 13 in the biggest gain since November. There have been reports of cold weather that are expected to increase heating demand. Natural gas prices as of press time Jan. 16 are at $3.36 per million British thermal unit (MMBtu). Spot intraday prices at the time of our report last week was at $2.74/MMBtu. Accordingly, weather will offer a positive pressure to this week’s price activity.

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What’s Affecting Gas Prices? (Week of Jan. 16) | Oil and Gas Investor.

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