Natural Gas – Weekly Recap July 1-5

The price of natural gas rallied at the beginning of the week only to slowly descend at the end of the week. The demand for natural gas in the residential/commercial sector continues to slowly fall while the power sector’s demand keeps rising. During last week, short term future price of natural gas (August delivery; Henry Hub) slightly rose by 1.46%. Based on the latest EIA natural gas storage weekly update, the natural gas storage rose at a faster rate than last year, but at the same pace as the average five years did: The NG storage injection was 72 Bcf. In comparison, the average five years buildup was 73 Bcf.

Here is a short breakdown of the latest changes in natural gas market for the week ending on July 5th 2013:

Natural Gas Market – July Update

During the previous week, the Nymex Henry Hub Future (short term delivery) rose by 1.46% and reached by Friday $3.617/mmbtu; its average daily change was 0.37%; its weekly average rate was 0.37% below last week’s average rate.

The difference between the NG future and spot prices – future minus spot – moved to Contango during last week.

Natural Gas Charts

The following charts shows the developments in Nat Gas future (Nymex Henry Hub) in $/mmbtu between July 1-5.

Natural Gas price  chart -  July 1-5  2013As seen in the chart herein, the natural gas rate (Henry Hub future rate) slightly rose during the week.


In the second chart are the daily percent shifts of the Nymex Henry Hub future (short term delivery).

Natural Gas chart - percent change  July 1-5  2013NG Storage Weekly Update – EIA Report:


Natural Gas Storage

The underground natural gas storage (Billion Cubic Feet) increased during last week by 2.84% or by 72 Bcf; the storage reached 2,605 billion cubic feet for all lower 48 states; the current storage is 1.1% below the 5-year average and 15.90% below the storage during the same week in 2012. During the same week in June 2012 the natural gas injection was only 39 Bcf, and the five year average injection to storage for the same week of June was 73 Bcf. This week’s injection was mostly due to the Eastern consuming region, in which the injection was 48 Bcf. This average injection is likely to have keft he price of natural relatively stable during last week.

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