Natural gas remained relatively unchanged on a weekly scale as the Henry Hub slightly rose by 0.3% to reach $3.86. United States Natural Gas (UNG) rose by 1%. Conversely, U.S natural gas producers such as Chesapeake Energy (CHK) continued to fall and shed 4.8%. What is next for natural gas?
The Contango keeps picking up
The Contango in the futures markets continues to rise as the natural gas market is less than two months away from the extraction season.
This higher Contango is likely to further result in United States Natural Gas under-performing the price of natural gas in the near term due to roll-decay.
Storage grew by 92 Bcf
The EIA’s recent weekly report showed an increase of 92 Bcf in storage; the underground natural gas storage grew to 2,801 Bcf, which is still 13.7% below last year’s levels. This recent injection was 32 Bcf higher than the 5-year average injection and 27 Bcf below last year’s.
The rest of this analysis is at Seeking Alpha
- Natural Gas Outlook for 2014
- Is Chesapeake Regaining Our Confidence?
- Is Liquefied Natural Gas Still a Buy?