Reacting to a string of super-healthy storage refills and forecasts of a cool summer in the eastern and midwestern population centers, July indexes dropped between 25 and nearly 70 cents/MMBtu from the prices recorded by NGI in the June bidweek. The Henry Hub came in at $5.29 in the monthly numbers released Tuesday, or 67 cents under the June quote of $5.96.

The month-to-month fall-off conformed to the Nymex futures contract which dropped 47 cents on expiration day last Thursday to close at $5.291, down 65.4 cents from the June contract’s final resting place of $5.945.

The price drops were the most marked, from 40 to 60-plus cents, along the Gulf Coast and in the Northeast and Midwest. At Rockies and California points, which have seen higher summer temperatures, the drop-off was considerably less, generally hovering between 25 and 35 cents. Nevertheless, prices to California still were well under those for gas going to the Midwest and Northeast.

Regional average prices reported by NGI were: California $5.25, down 35 cents; Rockies $4.63, down 29 cents; Midwest $5.57, down 54 cents; Northeast $5.76, down 64 cents; Louisiana $5.29, down 63 cents; South Texas $5.16, down 63 cents; East Texas $5.29, down 57 cents; and West Texas $5.14, down 34 cents.

The national spot gas average for July reported by NGI was $5.26, down 50 cents from June 1.

July’s downturn marks a sharp reversal from June, when index gains from the previous month were nearly a dollar at most points. The June strength was largely derived from a prompt-month futures advance exceeding 80 cents, but it also was in an atmosphere of greater concern over filling storage by the winter season. A string of 100 Bcf-plus injection reports during June helped alleviate some of that concern.

©Copyright 2003 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.