Highest natural gas prices since mid-1980s

WASHINGTON — Despite two consecutive monthly declines in average U.S. natural gas spot prices, the winter of 2005-06 had the highest gas prices since the mid-1980s.

The average U.S. monthly natural gas spot price for March dropped 11.8 percent from February, to $6.67/MMBtu, following a 24 percent decline a month earlier.

However, the average wholesale price for this winter’s November-through-March heating season was $9.26/MMBtu, or 43.1 percent higher than the $6.47/MMBtu average for the 2004-2005 winter — and 81.9 percent above the $5.09/MMBtu average for five winters previous to this one — a survey by Inside FERC’s Gas Market Report found.

The Northeast was the highest-priced market this winter, with a wholesale average of $11.67/MMBtu, or 46.2 percent above last winter and 82.3 percent over the previous five winters, said Platts, the energy information business of The McGraw-Hill Cos.

UPI