Natural Gas – Weekly Recap June 3-7

Natural gas market resumed their cool down as the short term future price of natural gas (June delivery) sharply declined during last week. By the end of last week, the Henry Hub future (short term delivery) plunged by 3.92%. Based on the recent EIA natural gas storage weekly update, the natural gas storage increased at a faster rate than the average five years did during the time frame: The NG storage injection was 111 Bcf. In comparison, during the same week last year the buildup was only 62 Bcf.

Here is a short analysis of the recent developments in natural gas market for the week ending on May 31st 2013:

Natural Gas Market – June Update

The Nymex Henry Hub Future (short term delivery) tumbled down during last week by 3.92% and reached by Friday $3.83/mmbtu; its average daily change was -0.78%; its weekly average rate was also 4.71% below last week’s average price.

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

Natural Gas Charts

The following charts show the developments in Nat Gas future (Nymex Henry Hub) in $/mmbtu between June 3-7.

Natural Gas price  chart -  June 3-7  2013As seen in the chart herein, the natural gas price (Henry Hub future rate) sharply fell by the end of 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  June 3-7  2013NG Storage Weekly Update – EIA Report:


Natural Gas Storage

The underground natural gas storage (Billion Cubic Feet) increased again during last week by 5.18% or by 111 Bcf; the storage reached 2,252 billion cubic feet for all lower 48 states; the current storage is 3% below the 5-year average and 21.5% below the storage during the same week in 2012. During the same week in May 2012 the natural gas injection was 62 Bcf, and the five year average injection to storage for the same week of May was 94 Bcf. This week’s higher than normal injection was mostly due to the Eastern consuming region, in which the injection was 58 Bcf.

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