NEW YORK, Dec 8 (Reuters) - Cold weather across the U.S. Northeast has more than doubled regional natural gas prices in New York City this month to their highest level since last winter, Reuters data showed on Wednesday.
Next-day gas on the Transco pipeline at the New York city gate NG-NYCZ6 averaged about $9.65 per million British thermal units, with intraday trades as high as $11.25, the highest trades seen since February, traders said. Prices ended November in the $4.70 area.
“People may have gone into December short, thinking prices would continue to fall, but it didn’t work. Some may also be waiting until January to use inventory,” a Pennsylvania-based trader said.
The gains have come despite winter inventories that hover near record highs. [ID:nPRWPI54]
(Storage graphic: link.reuters.com/hut82k )
Last December, New York prices spiked during several early bursts of cold, peaking at just over $10 per mmBtu. Last winter’s regional peak price was just over $14 per mmBtu hit in early January.
But traders also noted prices were still below comparable residual fuel prices in New York Harbor, pegged in the $12 to $13 area early this week. PPIN
Temperatures in New York were seen below normal for much of the next six days, with lows in the low-20s Fahrenheit, according to forecaster DTN Meteorlogix.
Data from Point Carbon, a Thomson Reuters company, showed the five day heating degree count at 12.4 above normal.
Degree days are a measure of departure in the mean daily temperature from 65 degrees F (18 Celsius) and are used to reflect demand for energy to heat homes and businesses. (Reporting by Eileen Moustakis and Joe Silha; Editing by Marguerita Choy)
Our Standards: The Thomson Reuters Trust Principles.