Natural gas prices (Henry Hub) much like other major commodities’ prices including crude oil prices and gold price started off the week with moderate rises, but soon after they tumbled down for the second half of the week. For natural gas price this is the second straight week in which they have declined very sharply.
Here is a short review of the main changes in natural gas prices for the week ending on June 24th:
Natural gas prices 2011 June – Review and Analysis
Natural gas spot price (Henry Hub) declined during the week by 3.23% and reached on Friday to $4.19/mmbtu – the lowest price level since May 20th; its average daily change was -0.92%, and its weekly average price was 5.22% below the previous week’s average price.
The Nymex Henry Hub Future Price (July delivery) also declined by 2.02% during the week, and its average price was 4.86% below last week’s average price.
The spread between the Henry Hub future and spot gas prices, i.e. future price minus spot price (if the spot prices are higher than the future prices its called Backwardation, if future price is higher than its called Contango) fluctuated during the week; it was mostly in Backwardation (i.e. the spot price was higher than spot price), but ended the week at $0.04/mmbtu.
Natural gas prices chart
The following chart shows the daily changes of natural gas prices (Henry Hub) and futures prices (Nymex Henry Hub) in $/mmbtu during June 20 to 24.
The chart shows natural gas prices rose at the first couple of days of the week and ended the week with a downward trend.
The second chart shows the daily percent changes of natural gas prices (Henry Hub) and Nymex Henry Hub, (the changes around the weekly trend); it shows that natural gas prices fell sharply on Thursday and Friday for spot price, and Wednesday and Thursday for future price.
EIA Natural gas report – highlights:
The underground natural gas storage (Billion Cubic Feet) have inclined for the eleventh straight week; last week it rose by 98 Bcf; as a result, the natural gas storage inclined to 2.354 billion cubic feet for all lower 48 states – the highest stock since January 21st, 2011; the natural gas storage is still 2.6% below the 5-year average, and 9.9% 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 presents the recent drop in natural gas spot prices and the ongoing rise in Natural Gas storage.
In conclusion, natural gas storage, consumption and production inclined, while natural gas imports declined during the week of June 17th.
For the complete natural gas market report, see here.
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For further reading:
Previous issues of weekly report:
- Natural gas prices fell sharply during the week – June 13-17
- Natural gas prices start June with rises – 31 May to June 3