Natural Gas Price– Weekly Recap 5-9 March

Natural gas prices continued their downward trend of the past several weeks. The natural gas market continues to be in Contango and will probably continue to be so in the weeks to come. During last week the Henry Hub spot price tumbled down by 6.36% and the future price (April delivery) by 6.45%. During March natural gas spot price decreased by 9.43% and the future price (April delivery) fell by 11.11%. 

Here is a short recap for the changes in natural gas prices for the week ending on March 9th 2012:

Natural Gas Price March – Weekly Recap and Analysis

table natural gas price - 5-9 March 2012The Nymex Henry Hub Future Price (April delivery) sharply declined during last week by 6.45% and reached on Friday $2.32 /mmbtu; its average daily change was -1.29%, and its weekly average price was 8.45% below the previous week’s average price.

Natural gas price (Henry Hub spot) also tumbled down by 6.36% during the week, and its average price was 7.62% below last week’s average price.

The gap 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) continued to be in Contango during the week, by the end of the week the gap reached $0.11/mmbtu, i.e. Contango.

Natural Gas Price Charts

The following charts present the changes in natural gas (Henry Hub) and futures prices (Nymex Henry Hub) in $/mmbtu between March 5th and March 9th.

Natural Gas price  chart -  5-9 March  2012

The first chart presents the developments in natural gas prices (Henry Hub future and spot) during last week: the natural gas prices continued their decline during most of the week.

Natural Gas price chart - percent change  5-9 March  2012
In the second chart are the daily percent changes of natural gas prices (Henry Hub spot and Nymex Henry Hub future).

Natural Gas Storage Update – EIA Report:


According to the recent natural gas report, the underground natural gas storage decreased last week by 80 Bcf to 2,433 billion cubic feet for all lower 48 states; the current natural gas storage is 48.3% above the 5-year average, and is also 43.6% above the storage level during the same week in 2011.

For the complete natural gas storage weekly report, see here.

For further reading: