The natural gas prices changed direction last week and sharply inclined as U.S natural gas consumption moderately rose, while natural gas production slipped.
Here is a summary of the recent U.S natural gas market EIA report regarding the week ending on October 21st:
Natural Gas Storage
The underground natural gas storage (Billion Cubic Feet) inclined for the twenty-ninth straight week; last week by 2.5% or by 92 Bcf; the natural gas storage reached 3,716 billion cubic feet for all lower 48 states – the highest stock level since December 3rd, 2010; the current natural gas storage is 4.4% above the 5-year average, but is still 0.7% below the storage level during the same week in 2010.
This increase in storage was primarily due to a 44 Bcf injection in the Eastern Consuming Region natural gas storage.
The chart below shows the natural gas storage (weekly figures) and Henry Hub natural gas prices in 2010 and 2011; the Henry Hub spot price shifted last week form the recent downward trend in recent weeks; during the third week of October the Henry Hub spot price inclined by 4.0% to an average weekly price of $3.62/mmbtu – the highest price level since the week of September 30th. The Henry Hub price was $0.25/mmbtu above its price level the same week in 2010.
U.S natural gas consumption moderately inclined during last week on a national level by 3.0%; that being said, the natural gas demand was mainly attributed to the residential/commercial sectors, while the power sector NG consumption declined by 9.0% (W-o-W).
Production and Imports
The U.S. domestic supply slightly slipped during last week by 0.6% compared with last week’s; the dry gas production slightly fell by 0.3% compared with last week’s rate and reached 62.6 Bcf per day; the domestic dry gas production was 7.3% above the same time last year; there was decrease in natural gas imports from Canada of 6.0% to an average of 5.4 Bcf/day; LNG imports sharply rose to an average of 0.767 Billion cubic feet/day.
According to the report the natural gas rig count decreased by 9 during the week to reach 927.
The US temperatures were warmer than last year, and warmer than normal: they have reached a weekly average of 58.0 degrees for the week of October 20th; they were 1.7 degree warmer than normal, and 1.1 degrees warmer than the temperatures from last year (same week).
Prices for the Week Ending October 21st
To sum up, natural gas storage, consumption and prices increased while natural gas production and imports slipped during the week of October 21st.
For further reading:
- Crude Oil Prices – Daily Outlook October 25
- U.S. Oil Stockpiles Slightly Rose by 0.7 Million Bbl – October 26
- Natural gas prices outlook for October 2011