Natural gas market continued to dwindle despite the short term rally of natural gas prices during the first couple of days of the week. Soon after natural gas rates resumed their descent. According to the recent NG storage update, there was a 62 bcf injection, which is nearly 18 Bcf below the injection from a year earlier.
Following these changes the difference between future and spot was mostly in Contango; it reached a weekly average of $0.07/mmbtu.
During last week the Henry Hub spot declined by 0.45% and the future (short term delivery) fell by 1.29%. During June, natural gas spot fell by 5.11% and the future (July delivery) by 4.96%.
Here is a short recap for the developments in natural gas market for the week ending on June 1st 2012:
Natural Gas Market– June Review
The Nymex Henry Hub Future (short term delivery) fell during last week by 1.29% and by Friday reached $2.30 /mmbtu; its average daily contraction was 0.2%, its weekly average price was 3.11% below the previous average price.
The Henry Hub spot also slipped during last week by 0.45%, and its average price was 3.07% below 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 reached $0.07, i.e. Contango.
Natural Gas Charts
The following charts presents Nat Gas (Henry Hub) and future (Nymex Henry Hub) in $/mmbtu between June 4th and June 8th.
NG Storage Update – EIA Report:
According to the recent update, the underground storage (Billion Cubic Feet) rose for the 11th consecutive weeks, last week the storage levels rose by 62 Bcf; the storage settled at 2,877 billion cubic feet for all lower 48 states; the current NGs storage is 31.4% above the 5-year average, and is also 32.9% above the storage level during the same week in 2011.
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