The future price of natural gas (short term delivery) zigzagged with an unclear trend during last week only to rally on a weekly scale. By the end of the week the Henry Hub future (short term delivery) rose by 3.71%. According to the recent EIA natural gas storage report, the natural gas storage increased at a faster pace than the average five years did during the same week: The NG storage injection was 99 Bcf. In comparison, during the same week last year the injection was 61 Bcf.
Here is a short analysis of the recent changes in natural gas market for the week ending on May 17th 2013:
Natural Gas Market – May Report
The Nymex Henry Hub Future (short term delivery) rose during last week by 3.71% and reached by Friday $4.06/mmbtu; its average daily change was 0.76%; its weekly average price was also 1.03% above last week’s average price.
The gap between the NG future and spot prices – future minus spot – was mostly in Contango during the previous week.
Natural Gas Charts
The following charts present the developments in Nat Gas future (Nymex Henry Hub) in $/mmbtu between May 13-17.
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 Storage
The underground natural gas storage (Billion Cubic Feet) rose again during last week by 5.31% or by 99 Bcf; the storage reached 1,964 billion cubic feet for all lower 48 states; the current storage is 4.1% below the 5-year average and 26.10% below the storage during the same week in 2012. During the same week in May 2012 the natural gas injection was 61 Bcf, and the five year average injection from storage for the same week of May was 83 Bcf. This week’s injection was mostly driven from Eastern consuming region with a 55 Bcf injection.
For further reading: