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Natural gas spot prices increased in all trading regions in the Lower 48 States this report week (WednesdayWednesday, March 26April 2). During the report week, the Henry Hub spot price increased $0.34 per million Btu (MMBtu) to $9.59. Frigid temperatures continued for a portion of the week in the Northeast and for most of the week in the West, likely boosting space-heating demand.

At the New York Mercantile Exchange (NYMEX), prices for futures contracts also registered increases, albeit less than in spot markets. The futures contract for May delivery rose about 15 cents per MMBtu on the week to $9.832.

With the traditional heating season not quite over, natural gas withdrawals from underground storage continued through last week. As of Friday, March 28, working gas in storage was 1,248 billion cubic feet (Bcf), which is 0.5 percent above the 5-year (2003-2007) average.

West Texas Intermediate (WTI) crude oil continued to trade at prices above $100 per barrel during the report week. However, for this report week, the price decreased $1.00 per barrel, trading yesterday at $104.83 per barrel or $18.07 per MMBtu.

Prices:

Price increases generally were larger at trading locations in the western half of the Lower 48 States. The average price at Arizona/Nevada trading locations increased 76 cents per MMBtu for the week to $9.37, while prices increased an average of 58 cents in California to $9.42. Cold temperatures affected consumption in the eastern half of the United States through Monday and Tuesday, which drove prices upward. However, the transition to springtime appears to be underway with warmer temperatures now moving into key consuming regions of the Northeast and the Midwest, resulting in a reversal of price movements in yesterdays (April 2) trading. With a major warming trend over the next several days, the price at the Henry Hub in Louisiana dropped 33 cents per MMBtu yesterday to $9.59. Nonetheless, the net change for the report week was an increase of 34 cents per MMBtu. Other spot markets along the Gulf Coast in Louisiana and Texas also registered relatively large price increases between $0.30 and $0.89 per MMBtu, resulting in an average regional price of $9.61 in Louisiana and $9.49 in East Texas yesterday.