Natural Gas Price– Weekly Recap December 10-14

Natural gas (short term delivery) sharply fell during last week and reached its lowest level since the end of September. According to the latest EIA report, the NG storage remained virtually unchanged; this low movement in the storage might have contributed to the plunge in natural gas prices. During last week the Henry Hub future (short term delivery) plummeted by 6.85%.

Here is a short analysis of the recent developments in natural gas market for the week ending on December 14th 2012:

Natural Gas Market – December Review

The Nymex Henry Hub Future (short term delivery) fell during last week by 6.85% and by Friday reached $3.31/mmbtu; its average daily change was -1.41%, its weekly average price was 6.31% below the previous average price.

The difference between the NG future and spot prices – future minus spot – was in contango during the week.

Natural Gas Charts

The following charts present the developments in Nat Gas future (Nymex Henry Hub) in $/mmbtu between December 10-14.

Natural Gas price  chart -  December 10-14 2012

As seen in the chart above, the NG prices (Henry Hub future and spot) tumbled down throughout the week.

In the second chart are the daily percent changes of the Henry Hub spot and Nymex Henry Hub future (short term delivery).  The chart shows the downward trend in the price of natural gas during last week.

Natural Gas chart - percent change December 10-14  2012

NG Storage Update – EIA Report:

According to the recent EIA review on natural gas, the underground storage (Billion Cubic Feet) slightly rose, after it had decreased in the previous week, by 2 Bcf to 3,806 billion cubic feet for all lower 48 states; the NGs storage was 8% above the 5-year average, and 1.3% above the storage level during the parallel week in 2011.

The recent NG storage weekly update as of December 7th.

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