Natural Gas – Weekly Recap February 18-22

Natural gas (short term delivery) changed course and rallied during last week.  According to the recent natural gas storage report, the natural gas storage contracted by a slightly faster than the average five years. Based on the to recent EIA report, the NG storage withdrawal was 127 Bcf; this withdrawal in the storage might have contributed to the rally of natural gas prices. During the previous week the Henry Hub future (short term delivery) increased by 4.38%.

Here is a short analysis of the recent developments in natural gas market for the week ending on February 22nd 2013:

Natural Gas Market – February Report

The Nymex Henry Hub Future (short term delivery) rose during last week by 4.38% and by Friday reached $3.29/mmbtu; its average daily change was 0.87%; its weekly average price was 0.66% above last week’s average price.

The difference between the NG future and spot prices – future minus spot – shifted from backwardation to contango during last week.

Natural Gas Charts

The following charts present the developments in Nat Gas future (Nymex Henry Hub) in $/mmbtu between February 18-22.

Natural Gas price  chart -  February 18-22  2013

As seen in the chart herein, the NG prices (Henry Hub future and spot) rallied during last week.

In the second chart are the daily percent shifts of the Henry Hub spot and Nymex Henry Hub future (short term delivery). The chart presents the price fluctuations of natural gas during last week.

Natural Gas chart - percent change February 18-22 2013NG Storage Update – EIA Report:


Natural Gas Storage

The underground natural gas storage (Billion Cubic Feet) declined during the previous week by 5.03% or by 127 Bcf; the storage reached 2,400 billion cubic feet for all lower 48 states; the current storage is 17% above the 5-year average but 9.2% below the storage during the same week in 2012. During the same week in February 2012 the NG extraction was 166 Bcf, and the five year average extraction for the parallel week of February was 123 Bcf. This news is might help rally the rates of natural gas and bring them back up. This week’s withdrawal was mostly driven from Eastern consumption region with a 79 Bcf extraction.

For further reading: