The natural gas prices didn’t do much last week as the natural gas (Henry Hub) spot average price remained flat, despite the growing U.S natural gas consumption due to the colder weather.
Here is a summary of the recent U.S natural gas market EIA report regarding the week ending on October 28th:
Natural Gas Storage
The underground natural gas storage (Billion Cubic Feet) rose for the thirtieth straight week; last week by 2.1% or by 78 Bcf; the natural gas storage reached 3,794 billion cubic feet for all lower 48 states – the highest stock level since November 26th, 2010; the current natural gas storage is 5.6% above the 5-year average, but is still 0.4% below the storage level during the same week in 2010.
This increase in storage was primarily due to a 39 Bcf injection in the production region natural gas storage.
The chart below presents the natural gas storage (weekly figures) and Henry Hub natural gas prices in 2010 and 2011; the Henry Hub spot price had a downward trend in recent weeks; during the last week of October the Henry Hub spot price remained unchanged at a weekly average price of $3.62/mmbtu. The Henry Hub price was $0.31/mmbtu above its price level the same week in 2010.
US natural gas consumption inclined during last week on a national level by 12.6%; most of the increase in the natural gas demand was attributed to the residential/commercial sectors with a 30% increase, while the power sector NG consumption slightly declined.
Production and Imports
Despite the increase in demand there was only a moderate increase in U.S. domestic supply during last week by 0.2% compared with last week’s; the dry gas production slightly rose by 0.3% compared with last week’s rate and reached 62.6 Bcf per day; the domestic dry gas production was 7.8% above the same time last year; there was a slight increase in natural gas imports from Canada by 1.6% to an average of 5.4 Bcf/day; this week’s Canadian imports were 2.3% above the rate in 2010.
According to the report the natural gas rig count increased by 7 during the week to reach 934.
The US temperatures were 3.7 degrees colder than last year, but 1.1 degrees warmer than normal.
Prices for the Week Ending October 28th
To sum up, natural gas storage, consumption production and imports increased while natural gas prices remained unchanged during the week of October 28th.
For further reading:
- Crude Oil Prices – Daily Outlook October 31
- U.S. Oil Stockpiles Inclined by 1.8 Million Bbl – November 3