Strong natural gas production in the Rockies and anemic heating demand over long stretches of the 2023-2024 winter resulted in an abundance of supply in the Mountain region and, by extension, suppressed prices.

NGI’s Rocky Mtns. Regional Avg. cash prices averaged $1.235/MMBtu to finish trading last week, down from around $3.00 as the winter season took hold in December.

While the factors in the region mirror the national price headwinds impacting the rest of the Lower 48 – record output late last year and again early in 2024 along with soft demand – the natural gas storage situation is most pronounced in the Rockies relative to historical norms.

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