Natural gas (short term delivery) continued to rally during the previous week. Based on the recent natural gas storage report, the natural gas storage fell by a faster rate than the average five years did. According to the latest EIA report, the NG storage withdrawal was 145 Bcf – almost the same as in the previous week; this withdrawal in the storage might have help pull up natural gas rates. During last week the Henry Hub future (short term delivery) sharply rose again by 6.7%.
Here is a short analysis of the latest developments in natural gas market for the week ending on March 15th 2013:
Natural Gas Market – March Report
The Nymex Henry Hub Future (short term delivery) increased again during last week by 6.7% and by Friday reached $3.87/mmbtu; its average daily change was 1.31%; its weekly average price was 5.18% above last week’s average price.
The difference between the NG future and spot prices – future minus spot – was mostly in contango during said week.
Natural Gas Charts
The following charts show the developments in Nat Gas future (Nymex Henry Hub) in $/mmbtu between March 11-15.
As seen in the chart above, the NG rates (Henry Hub future and spot) sharply rose again during last 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 price fluctuations of natural gas during last week.
NG Storage Update – EIA Report:
Natural Gas Storage
The underground natural gas storage (Billion Cubic Feet) fell again during last week by 6.96% or by 145 Bcf; the storage reached 1,938 billion cubic feet for all lower 48 states – the lowest level since April 2011; the current storage is 11.4% above the 5-year average but 18.5% below the storage during the same week in 2012. During the same week in March 2012 the NG extraction was only 64 Bcf, and the five year average extraction for the parallel week of March was 66 Bcf. This news is might further push up the rates of natural gas. This week’s withdrawal was mostly driven from Eastern consumption region with a 92 Bcf extraction.
For further reading: