Natural gas prices (Henry Hub spot) changed direction and sharply fell during last week as the Henry Hub spot price fell by 3%, and the future price (short term delivery) declined by 4.85%. During February natural gas spot price increased by 2.0% and the future price (March delivery) by 2.78%.
Here is a short recap for the developments of natural gas price for the week ending on February 17th, the second week of February:
Natural Gas Price February – Weekly Recap and Analysis
The Nymex Henry Hub Future Price (short term delivery) sharply decreased during last week by 4.85% and reached on Friday $2.55 /mmbtu; its average daily change was -0.97%, but its weekly average price was 3.88% above the previous week’s average price.
Natural gas price (Henry Hub spot) also sharply fell by 3% during the week, and its average price was 4.53% above last week’s average price.
The spread between the natural gas future and spot prices, i.e. future price minus spot price (if the spot are higher than the future its called Backwardation, if future is higher than its called Contango) shifted from Contango to Backwardation during the week, by the end of the week the gap reached -$0.04/mmbtu, i.e. Backwardation.
Natural Gas Price Charts
The following charts present the changes of natural gas (Henry Hub) and futures prices (Nymex Henry Hub) in $/mmbtu between February 20th and February 24th.
Natural Gas Storage Update – EIA Report:
According to the previous natural gas report, the underground natural gas storage decreased last week by 166 Bcf to 2,595 billion cubic feet for all lower 48 states; the current natural gas storage is 40.2% above the 5-year average, and is also 40.9% above the storage level during the same week in 2011.
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