Natural gas prices (Henry Hub spot) resumed their downward trend as was the case during most of February. The market is still in Contango and will probably continue to be in this situation in the weeks to come. During last week the Henry Hub spot price declined by 8.88%, and the future price (short term delivery) by 2.75%. During February natural gas spot price decreased by 3.17%, while the future price (Short term delivery) rose by 4.4%.
Here is a short recap for the developments of natural gas price for the week ending on March 2nd 2012:
Natural Gas Price February – Weekly Recap and Analysis
The Nymex Henry Hub Future Price (short term delivery) sharply fell during last week by 2.75% and reached on Friday $2.48 /mmbtu; its average daily change was -0.5%, and its weekly average price was 3.5% below the previous week’s average price.
Natural gas price (Henry Hub spot) also sharply declined by 8.88% during the week, and its average price was 7.22% below 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) in Contango during the week, by the end of the week the gap reached $0.12/mmbtu, i.e. Contango.
Natural Gas Price Charts
The following charts present the developments in natural gas (Henry Hub) and futures prices (Nymex Henry Hub) in $/mmbtu between February 27th and March 2nd.
Natural Gas Storage Update – EIA Report:
According to the recent natural gas report, the underground natural gas storage declined last week by 82 Bcf to 2,513 billion cubic feet for all lower 48 states; the current natural gas storage is 45% above the 5-year average, and is also 43% above the storage level during the same week in 2011.
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