Natural gas market continues to cool down as the supply keeps rising, the demand for natural gas in the residential/commercial sector is falling and the storage continues to buildup at the faster than normal pace. During the week, short term future price of natural gas (July delivery; Henry Hub) sharply decreased by 5.46%. According to the latest EIA natural gas storage weekly report, the natural gas storage increased again at a faster rate than the average five years did for this time of the year: The NG storage injection was 95 Bcf. In comparison, the average five years buildup was only 76 Bcf.
Here is a short breakdown of the latest developments in natural gas market for the week ending on June 28th 2013:
Natural Gas Market – June Update
During the previous week, the Nymex Henry Hub Future (short term delivery) sharply declined by 5.46% and reached by Friday $3.57/mmbtu; its average daily change was -1.1%; its weekly average rate was 5.94% below last week’s average price.
The gap between the NG future and spot prices – future minus spot – moved to Backwardation during recent week.
Natural Gas Charts
The following charts present the developments in Nat Gas future (Nymex Henry Hub) in $/mmbtu between June 24-28.
As seen in the chart above, the natural gas rate (Henry Hub future rate) tumbled down during the week.
In the second chart are the daily percent changes of the Nymex Henry Hub future (short term delivery).
NG Storage Weekly Update – EIA Report:
Natural Gas Storage
The underground natural gas storage (Billion Cubic Feet) rose again during last week by 3.90% or by 95 Bcf; the storage reached 2,533 billion cubic feet for all lower 48 states; the current storage is 1.2% below the 5-year average and 17.10% below the storage during the same week in 2012. During the same week in June 2012 the natural gas injection was only 57 Bcf, and the five year average injection to storage for the same week of June was 76 Bcf. This week’s higher than normal injection was mostly due to the Eastern consuming region, in which the injection was 58 Bcf. This high injection is likely to have drag down natural gas prices during last week.
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