Natural Gas Price– Weekly Recap June 25-29

Natural gas prices continued to rise during last week. The recent hike in oil prices by the end of the week may have also helped pull up natural gas rates.   According to the recent NG storage update, there was only a 57 bcf injection, which is nearly 21 Bcf below the injection from a year earlier. The natural gas production level didn’t rise while the demand continued to rise. Following these shifts the difference between future and spot remained mostly in Contango; it reached a weekly average of $0.006/mmbtu.

During last week the Henry Hub spot increased by 9.6% and the future (short term delivery) by 7.22%. During June, natural gas spot increased by 16.6% and the future (July delivery) by 16.53%.

Here is a short recap for the developments in natural gas market for the week ending on June 29th 2012:

Natural Gas Market– June Review

table natural gas - 25-29 June 2012The Nymex Henry Hub Future (short term delivery) rose during last week by 7.22% and by Friday reached to $2.82 /mmbtu; its average daily growth was 1.43%, its weekly average price was 6.89% above the previous average price.

The Henry Hub spot also increased during last week by 9.6%, and its average price was 9.33% above the previous average price.

The gap between the NG future and spot prices, i.e. future minus spot (if the spot are higher than the future its called Backwardation, if future is higher than its called Contango) was mostly in Contango during the week; by the end the difference rose to $0.08, i.e.  Contango.

Natural Gas Charts

The following charts presents Nat Gas (Henry Hub) and future (Nymex Henry Hub) in $/mmbtu between June 25th and June 29th.

Natural Gas price  chart -  25-29 June 2012The first chart shows the development of NAT Gas (Henry Hub future and spot) as natural gas future and spot had a general upward trend.

Natural Gas chart - percent change  25-29 June  2012In the second chart are the daily percent changes of the Henry Hub spot and Nymex Henry Hub future (short term delivery).

NG Storage Update – EIA Report:

According to the recent report, the underground storage (Billion Cubic Feet) rose for the 14th consecutive weeks, last week the storage levels increased by only 57 Bcf; the storage settled at 3,063 billion cubic feet for all lower 48 states; the current NGs storage is 25% above the 5-year average, and is also 27.1% above the storage level during the same week in 2011.

The recent NG storage weekly update as of June 22nd.

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