Natural Gas – Weekly Recap October 28 – November 1

The natural gas market has cooled down last week after it had heated up in the previous week. The price of natural gas sharply fell mainly at the beginning and the end of the week, partly because the recent injection to storage was lower than normal. The recent EIA report showed a moderate increase in supply and sharp rise in demand– the natural gas market has slightly tightened, which could eventually lead to the recovery of natural gas on Friday.

Here is a short review of the recent changes in natural gas market for the week ending on November 2nd 2013:

Natural Gas Market – November Review

The Nymex Henry Hub Future (short term delivery) declined by 5.23% and reached by Friday $3.51/mmbtu; its average daily change was -1.04%; its weekly average rate was 2.33% below last week’s average rate.

The difference 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 shifts in Nat-gas future (Nymex Henry Hub) in $/mmbtu during October 28- November 1.

Natural Gas price  chart - October 28- November 1   2013

As seen in the chart herein, the natural gas price (Henry Hub future rate) has fallen during the beginning and end of the week.

In the second chart are the daily percent changes of the Nymex Henry Hub future (short term delivery).

Natural Gas chart - percent change October 28- November 1 2013EIA NG Storage Weekly Report


The underground natural gas storage (Billion Cubic Feet) increased again during last week by 1.02% or by 38 Bcf; the storage reached 3,779 billion cubic feet for all lower 48 states; the current storage is 1.6% above the 5-year average but is 3.1% below the storage during the same week in 2012. The latest injection was lower than the five year average and last year’s: During the same week in October 2012 the natural gas injection was 65 Bcf, and the five year average injection to storage for the same week of October was 38 Bcf. This week’s injection was mostly due to the producing region, in which the injection was 18 Bcf.

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