Due to Thanksgiving in the US, this week’s natural gas report will only refer to the changes in natural gas storage and prices. Natural gas prices sharply decline during last week, while natural gas storage continued to stock-up but at a slower pace than in recent weeks.
Here is a summary of the recent U.S natural gas market EIA report regarding the week ending on November 18th:
Natural Gas Storage
The underground natural gas storage (Billion Cubic Feet) slightly rose for the thirty-third straight week; last week by 0.2% or by 9 Bcf; the natural gas storage reached 3,852 billion cubic feet for all lower 48 states – the highest stock level since 1993; the current natural gas storage is 6.4% above the 5-year average, and is 0.6% above the storage level during the same week in 2010.
The slight increase in storage was primarily due to a 5 Bcf injection in the production region natural gas storage.
In the chart below are the weekly changes of natural gas storage (weekly figures) and Henry Hub natural gas prices during 2010-2011; the Henry Hub spot price sharply declined during last week and continued its downward trend of recent weeks. During last week the Henry Hub spot price sharply declined by 9.4% to a weekly average price of $3.10/mmbtu. The Henry Hub price was $0.63/mmbtu below its price level the same week in 2010.
Prices for the Week Ending November 18th
Nymex Henry Hub Future Price (December delivery) sharply fell during the week by 4.05%; its average daily change was -1.48%, and its weekly average price was 7.57% below the previous week’s average price.
Natural gas spot price (Henry Hub) also sharply fell by 3.82% during the week, and its average price was 9.02% below last week’s average price.
The spread between the Henry Hub future and spot gas prices, i.e. future price minus spot price continued to be in Contango during the week.
To sum up, natural gas storage slightly rose while natural gas prices sharply declined during the week of November 18th.
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