Natural Gas – Weekly Recap January 21-25

Natural gas (short term delivery) changed direction and declined during last week and this downfall came despite the recent storage report in which the natural gas storage fell by a sharper rate than the average five years. According to the recent EIA report, the NG storage declined by 172 Bcf; this fall in the storage might have curbed the downward trend in natural gas prices on Friday. During last week the Henry Hub future (short term delivery) fell by 3.42%.

Here is a short analysis of the recent shifts in natural gas market for the week ending on January 25th 2013:

Natural Gas Market – January Review

The Nymex Henry Hub Future (short term delivery) declined during last week by 3.42% and by Friday reached $3.44/mmbtu; its average daily change was -0.69%; its weekly average price was 1.41% above the previous week’s average price.

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

Natural Gas Charts

The following charts show the developments in Nat Gas future (Nymex Henry Hub) in $/mmbtu between January 21-25.

Natural Gas price  chart -  January 21-25  2013As seen in the chart herein, the NG prices (Henry Hub future and spot) tumbled down during 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 presents the shifts in the price movement of natural gas during  the week.

Natural Gas chart - percent change January 21-25 2013NG Storage Update – EIA Report:


Natural Gas Storage

The underground natural gas storage (Billion Cubic Feet) declined during the previous week by 5.43% or by 172 Bcf; the storage reached 2,996 billion cubic feet for all lower 48 states; the current storage is 12% above the 5-year average, but 5% below the storage during the same week in 2012. During the same week in January 2012 the NG extraction was 192 Bcf, and the five year average extraction for the parallel week of January was 157 Bcf. This news is likely to further pull up the prices of natural gas. Moreover, based on past years, in the weeks to follow the extractions are likely to rise.

This week’s extraction was mostly driven from Eastern consumption region with an 80 Bcf extraction.

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