Natural gas prices (Henry Hub) started August with falls, while the natural gas storage continues to pile up.
The underground natural gas storage (Billion Cubic Feet) inclined for the eighteenth straight week; last week by 0.9% or by 25 Bcf; as a result, the natural gas storage inclined to 2,783 billion cubic feet for all lower 48 states – the highest stock level since January 7th, 2011; the natural gas storage is still 2.8% below the 5-year average, and 6.6% below the storage level during the same week in 2010.
The chart below shows the natural gas storage (weekly figures) and Henry Hub natural gas prices during 2011; the chart shows the steady stock up in natural gas storage since the beginning of April; it also shows the sharp change in direction for natural gas spot price during recent weeks. The Henry Hub is still $0.59/mmbtu below its price level the same week last year.
The U.S. weekly dry gas production reached 61.3 Bcf per day, as it increased by 0.6% during the week.
According to the report the natural gas rig count inclined by 6 during the week to reach 883
Natural gas spot price (Henry Hub) decreased during the week by 6.76% and reached on Friday $4.00/mmbtu; its average daily change was -1.23%, and its weekly average price was 4.32% below the previous week’s average price.
The Nymex Henry Hub Future Price (September delivery) also declined by 5.92% during the week, and its average price was 5.59% below last week’s average price.
To sum up, natural gas storage and production inclined while natural gas prices, imports and consumption fell during the week of August 5th.
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