Natural Gas – Weekly Recap October 7-11

The natural gas market has heated up in the past week after it had been cooling down in previous weeks. The price of natural gas rallied during most of last week, despite the recent injection to storage was close to normal. Conversely, the recent EIA report revealed a rise in demand and a drop in supply – the natural gas market has tightened. This shift in the market could have been enough to pull back up the price of natural gas.

Here is a short review of the latest developments in natural gas market for the week ending on October 11th 2013:

Natural Gas Market – October Review

The Nymex Henry Hub Future (short term delivery) bounced back and rose by 7.7% and reached by Friday $3.78/mmbtu; its average daily change was 1.51%; its weekly average rate was 4.56% above last week’s average rate.

The gap between the NG future and spot rates – 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 7-11.

Natural Gas price  chart - October 7-11  2013

As seen in the chart herein, the natural gas price (Henry Hub future rate) has sharply increased during most of the previous week.

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

Natural Gas chart - percent change October 7-11 2013EIA NG Storage Weekly Report:

 

The underground natural gas storage (Billion Cubic Feet) increased again during last week by 2.58% or by 90 Bcf; the storage reached 3,577 billion cubic feet for all lower 48 states; the current storage is 1.60% above the 5-year average but is also 3.70% below the storage during the same week in 2012. The latest injection was close to the five year average and higher than last year’s: During the same week in October 2012 the natural gas injection was 72 Bcf, and the five year average injection to storage for the same week of October was 86 Bcf. This week’s injection was mostly due to the Eastern consuming region, in which the injection was 51 Bcf.

For further reading: