Natural Gas – Weekly Recap April 8-12

Natural gas future price (short term delivery) started off the week falling only to rally throughout the rest of the week. By the end of the week the Henry Hub future (short term delivery) rose again by 2.35%. Based on the latest EIA natural gas storage update, the natural gas storage slightly fell again while the average five years rose: The NG storage withdrawal was 14 Bcf. In comparison, during the same week last year the injection was 8 Bcf; this withdrawal in the storage might have pressured up natural gas prices by the end of the week.,

Here is a short analysis of the latest changes in natural gas market for the week ending on April 12th 2013:

Natural Gas Market – April Report

The Nymex Henry Hub Future (short term delivery) increased again during last week by 2.35% and by Friday reached $4.22/mmbtu; its average daily change was 0.48%; its weekly average price was 2.95% above last week’s average price.

The difference between the NG future and spot prices – future minus spot – shifted between  backwardation and Contango during said week.

Natural Gas Charts

The following charts show the shifts in Nat Gas future (Nymex Henry Hub) in $/mmbtu between April 8-12.

Natural Gas price  chart -  April 8-12  2013

As seen in the chart herein, the NG prices (Henry Hub future and spot) bounced back by the end of the week after they had declined during most of 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 shows the price shifts of natural gas during last week.

Natural Gas chart - percent change  April 8-12 2013

NG Storage Update – EIA Report:

Natural Gas Storage

The underground natural gas storage (Billion Cubic Feet) declined again during the previous week by 0.83% or by 14 Bcf; the storage reached 1,673 billion cubic feet for all lower 48 states – the lowest level since April 2011; the current storage is 3.8% below the 5-year average and 32.5% below the storage during the same week in 2012. During the same week in April 2012 the natural gas injection was 8 Bcf, and the five year average injection from storage for the parallel week of April was 26 Bcf. This news is might have contributed to rally of natural gas prices. This week’s withdrawal was mostly driven from Eastern consumption region with a 16 Bcf extraction.

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2 comments for “Natural Gas – Weekly Recap April 8-12

  1. Alan
    April 15, 2013 at 10:13 pm

    Good job – what ticker do you suggest to invest for nat gas ??

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