The natural gas market continues to heat up as the price of Henry Hub has increased again mainly during the second half of the week. The recent increase in prices was partly due to the slight increase in demand for natural gas in the Residential/industrial sector and despite the decline in demand in the power sector during the previous week; in total, the demand slightly rose last week; the supply slightly contracted. According to the EIA natural gas storage weekly report, natural gas storage buildup was 65 Bcf, which was very near the five year average injection but much higher than last year’s injection.
Here is a short review of the latest shifts in natural gas market for the week ending on September 13th 2013:
Natural Gas Market – September Recap
During the previous week, the Nymex Henry Hub Future (short term delivery) increased by 4.16% and reached by Friday $3.68/mmbtu; its average daily change was 0.83%; its weekly average rate was 0.20% above last week’s average rate.
The gap between the NG future and spot prices – future minus spot – was mostly in Backwardation during last week.
Natural Gas Charts
The following charts show the developments in Nat-gas future (Nymex Henry Hub) in $/mmbtu during September 9-13.
In the second chart are the daily percent shifts of the Nymex Henry Hub future (short term delivery).
The underground natural gas storage (Billion Cubic Feet) increased again during last week by 2.04% or by 65 Bcf; the storage reached 3,253 billion cubic feet for all lower 48 states; the current storage is 1.4% above the 5-year average but remained 5% below the storage during the same week last year. The recent injection was almost the same as the five year average but much higher than last year’s: During the same week in September 2012 the natural gas injection was 27 Bcf, and the five year average injection to storage for the same week of September was 69 Bcf. This week’s injection was mostly due to the Eastern consuming region, in which the injection was 49 Bcf.
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