Natural Gas – Weekly Recap February 4-8

Natural gas (short term delivery) slightly declined during last week.  According to the recent natural gas storage report, the natural gas storage fell by a slower rate than the average five years. According to the latest EIA report, the NG storage withdrawal was 118 Bcf; this withdrawal in the storage might have curbed the decline of natural gas prices. During the previous week the Henry Hub future (short term delivery) declined by 0.88%.

Here is a short analysis of the recent shifts in natural gas market for the week ending on February 8th 2013:

Natural Gas Market – February Review

The Nymex Henry Hub Future (short term delivery) decreased during last week by 0.88% and by Friday reached $3.27/mmbtu; its average daily change was -0.15%; its weekly average price was 1.21% above last week’s average price.

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

Natural Gas Charts

The following charts present the changes in Nat Gas future (Nymex Henry Hub) in $/mmbtu between February 4-8.

Natural Gas price  chart -  February 4-8  2013As seen in the chart herein, the NG rates (Henry Hub future and spot) slightly increased during last week.


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

Natural Gas chart - percent change February 4-8 2013NG Storage Update – EIA Report:

The underground natural gas storage (Billion Cubic Feet) declined during last week by 4.21% or by 118 Bcf; the storage reached 2,684 billion cubic feet for all lower 48 states; the current storage is 15% above the 5-year average but 7.8% below the storage during the same week in 2012. During the same week in February 2012 the NG extraction was 78 Bcf, and the five year average extraction for the parallel week of February was 175 Bcf. This news is might change the course of natural gas prices and bring them back up. On the other hand, the current winter storm Nemo that stuck the East Coast may push up the demand for natural gas in the North East.

This week’s withdrawal was mostly driven from Eastern consumption region with a 88 Bcf extraction.

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