Natural gas (short term delivery) rose again during last week. Based on the recent natural gas storage report, the natural gas storage shrunk by a faster rate than the average five years did. Based on the latest EIA report, the NG storage withdrawal was 171 Bcf; this withdrawal in the storage might have contributed to the recovery of natural gas prices. During last week the Henry Hub future (short term delivery) increased by 5.01%.
Here is a short analysis of the recent developments in natural gas market for the week ending on March 1st 2013:
Natural Gas Market – February Report
The Nymex Henry Hub Future (short term delivery) increased again during last week by 5.01% and by Friday reached $3.46/mmbtu; its average daily change was 1%; its weekly average price was 6.02% above last week’s average price.
The gap between the NG future and spot prices – future minus spot – remained mostly in backwardation during last week.
Natural Gas Charts
The following charts show the developments in Nat Gas future (Nymex Henry Hub) in $/mmbtu between February 25- March 1.
In the second chart are the daily percent changes of the Henry Hub spot and Nymex Henry Hub future (short term delivery). The chart presents the price fluctuations of natural gas during the previous week.
Natural Gas Storage
The underground natural gas storage (Billion Cubic Feet) fell again during last week by 7.13% or by 171 Bcf; the storage reached 2,229 billion cubic feet for all lower 48 states; the current storage is 16% above the 5-year average but 12.1% below the storage during the same week in 2012. During the same week in February 2012 the NG extraction was 107 Bcf, and the five year average extraction for the parallel week of February was 82 Bcf. This news is might help pull up the prices of natural gas and bring them back up. This week’s withdrawal was mostly driven from Eastern consumption region with a 109 Bcf extraction.
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