Natural Gas – Weekly Recap May 28-31

The natural gas market has cooled down as the short term future price of natural gas (June delivery) tumbled down during last week. By the end of the week, the Henry Hub future (short term delivery) plummeted by 5.97%. According to the latest EIA natural gas storage weekly report, the natural gas storage rose at a slightly faster pace than the average five years did during the time frame: The NG storage injection was 88 Bcf. In comparison, during the same week last year the injection was 71 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 – 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 changes in Nat Gas future (Nymex Henry Hub) in $/mmbtu between May 28-31.


As seen in the chart above, the natural gas price (Henry Hub future rate) tumbled down during last 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 4.29% or by 88 Bcf; the storage reached 2,141 billion cubic feet for all lower 48 states; the current storage is 3.9% below the 5-year average and 23.7% below the storage during the same week last year. During the same week in May 2012 the natural gas injection was 71 Bcf, and the five year average injection to storage for the same week of May was 87 Bcf. This week’s higher than normal injection was mostly driven from Eastern consuming region with a 53 Bcf injection.

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