The short term future rate of natural gas (June delivery) rallied during most of last week. By the end of the week the Henry Hub future (short term delivery) increased by 4.49%. Based on the latest EIA natural gas storage weekly update, the natural gas storage rose at a slower pace than the average five years did during the time frame: The NG storage injection was 89 Bcf. In comparison, during the same week last year the injection was 77 Bcf.
Here is a short analysis of the recent shifts in natural gas market for the week ending on May 24th 2013:
Natural Gas Market – May Update
The Nymex Henry Hub Future (short term delivery) increased during last week by 4.49% and reached by Friday $4.24/mmbtu; its average daily change was 0.89%; its weekly average rate was also 4.8% above last week’s average price.
The difference between the NG future and spot prices – future minus spot – was mostly in Contango during last week.
Natural Gas Charts
The following charts present the developments in Nat Gas future (Nymex Henry Hub) in $/mmbtu between May 20-24.
In the second chart are the daily percent shifts of the Nymex Henry Hub future (short term delivery).
Natural Gas Storage
The underground natural gas storage (Billion Cubic Feet) increased again during last week by 4.53% or by 89 Bcf; the storage reached 2,053 billion cubic feet for all lower 48 states; the current storage is 3.9% below the 5-year average and 24.9% below the storage during the same week in 2012. During the same week in May 2012 the natural gas injection was 77 Bcf, and the five year average injection from storage for the same week of May was 95 Bcf. This week’s injection was mostly driven from Eastern consuming region with a 46 Bcf injection.
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