Natural gas market is cooling down – June 24

Natural gas prices (Henry Hub) continue to fall very sharply and they reached at $4.37/mmbtu on June 21st – the lowest price level since May 23rd.

Here is a summary of the recent U.S natural gas market EIA report regarding the week ending on June 17th:

Natural gas Storage

The underground natural gas storage (Billion Cubic Feet) continue to stock up as they have inclined for the eleventh straight week; last week it rose by 4.3% or by 98 Bcf; as a result, the natural gas storage inclined to 2.354 billion cubic feet for all lower 48 states – the highest stock since January 21st, 2011; the natural gas storage is still 2.6% below the 5-year average, and 9.9% below the storage level during the same week in 2010.

This rise in storage was primarily due to a 64 Bcf injection in the Eastern Consuming Region natural gas storage.

The chart below shows the natural gas storage (weekly figures) and Henry Hub natural gas prices during 2011; the chart presents the recent drop in natural gas spot prices and the ongoing rise in Natural Gas storage.


natural gas prices chart 2011 (Henry Hub Natural Gas storage 2011 JUNE 17


The natural gas consumption rose slightly this week as electric power sector consumption inclined by 5.3% over last week; nevertheless, the residential and commercial sectors’ consumption declined last week.

Production and Imports

The U.S. natural gas supply remained high, as the production inclined last week by 0.6% and by 7.2% compared with last year’s.

The imports of natural gas from Canada fell by 5.4% compared with last week’s average import flow.

According to the report the natural gas rig count declined by 9 during the week to reach 870.

The US temperatures were slightly cooler last week and reached a weekly average of 70.1 degrees for the week ending on June 16th, which was 2.3 degrees cooler than last week’s and 2.3 degrees cooler than last year’s average.

Prices for the week ending June 17th

Natural gas spot price (Henry Hub) declined during the week by 7.58% and reached on Friday to $4.39/mmbtu – the lowest price level in June; its average daily change was -1.43%, and its weekly average price was 5.5% below the previous week’s average price.

The Nymex Henry Hub Future Price (July delivery) also declined by 6.8% during the week, and its average price was 5.8% below last week’s average pric

A detailed analysis of natural gas prices for the week of June 17th is herein.

In conclusion, natural gas storage, consumption and production inclined, while natural gas prices and imports declined during the week of June 17th.


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