Natural Gas – Weekly Recap March 4-8

Natural gas (short term delivery) continued to trade up during most of last week.  According to the recent natural gas storage update, the natural gas storage contracted by a faster pace than the average five years did. Based on the recent EIA report, the NG storage withdrawal was 146 Bcf; this withdrawal in the storage might have help pressure up natural gas rates. During the previous week the Henry Hub future (short term delivery) increased again by 5.01%.

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

Natural Gas Market – March Report

The Nymex Henry Hub Future (short term delivery) rose again during the previous week by 5.01% and by Friday reached $3.63/mmbtu; its average daily change was 1%; its weekly average price was 3.03% above last week’s average price.

The gap between the NG future and spot prices – future minus spot –  was mostly in backwardation during said week.

Natural Gas Charts

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

Natural Gas price  chart -  March 4-8  2013As 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 shows the price fluctuations of natural gas during the previous week.

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


Natural Gas Storage

The underground natural gas storage (Billion Cubic Feet) declined during last week by 6.55% or by 146 Bcf; the storage reached 2,083 billion cubic feet for all lower 48 states; the current storage is 14.8% above the 5-year average but 14.8% below the storage during the same week in 2012. During the same week in March 2012 the NG extraction was 80 Bcf, and the five year average extraction for the parallel week of March was 100 Bcf. This news is might help keep the prices of natural gas rising. This week’s withdrawal was mostly driven from Eastern consumption region with a 77 Bcf extraction.

For further reading: