Natural gas prices (Henry Hub spot) didn’t do much during last week as the Henry Hub spot price slightly declined, while the future price (short term delivery) rose. During February natural gas spot price slipped by 0.79% and the future price (March delivery) by 0.8%.
Here is a short recap for the developments of natural gas price for the week ending on February 3rd, the second week of February:
Natural Gas Price January/February – Weekly Recap and Analysis
Natural gas price, the Nymex Henry Hub Future Price (short term delivery) rose during last week by 3.73% and reached on Friday $2.50 /mmbtu; its average daily change was 0.78%, and its weekly average price was 2.36% below the previous week’s average price.
Natural gas price (Henry Hub spot) on the other hand slightly decreased by 0.80% during the week, but its average price was 1.66% 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) was mostly in Backwardation during the week, by the end of the week the gap reached -$0.02/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 6th and February 10th.
In the first graph are the changes in natural gas prices (Henry Hub future and spot) during the passing week: the natural gas price (spot and future short term delivery) didn’t move much as the spot price slightly declined.
Natural Gas Storage Data Update – EIA Report:
According to the recent natural gas report, the underground natural gas storage declined last week by 78 Bcf to 2,888 billion cubic feet for all lower 48 states; the current natural gas storage is 32.8% above the 5-year average, and is also 32.8% above the storage level during the same week in 2011.
For further reading: