US Natural gas traders had to experience many fluctuations to the US natural gas prices (Henry Hub) throughout the week; the natural gas prices showed sharp gains during the first part of the week, only to end the week below their initial price levels. The recent EIA natural gas market report showed a drop in consumption in natural gas during last week, while natural gas production and imports rose. These findings suggest that, all things being equal, the natural gas market continues to loosen and thus puts less pressure on natural gas prices from rising.
By the end of the week, the Nymex Henry Hub Future Price (October delivery) reached $3.81/ MMbtu, and the Henry Hub spot price ended at $3.84/ MMbtu.
Here is a short review of the main changes in natural gas prices for the week ending on September 16th:
Natural gas prices 2011 September – Weekly Review and Analysis
Nymex Henry Hub Future Price (October delivery) declined by 1.93% during the week, and its average price was 0.67% below last week’s average price.
Natural gas spot price (Henry Hub) decreased during the week by 2.04% and reached on Friday $3.84/mmbtu; its average daily change was -0.59%, and its weekly average price was 0.15% below the previous week’s average price.
The gap between the Henry Hub future and spot gas prices, i.e. future price minus spot price (if the spot prices are higher than the future prices its called Backwardation, if future price is higher than its called Contango) was mostly in Backwardation throughout the week; By Friday it reached -$0.03/mmbtu – i.e. Backwardation.
Natural gas prices chart
The following chart shows the daily changes of natural gas prices (Henry Hub) and futures prices (Nymex Henry Hub) in $/mmbtu during September 12- September 16.
The chart shows that natural gas spot price and Henry Hub future price had an upward trend during the first part of the week, but by the end of the week they have changed direction and sharply fell.
The second chart shows the daily percent changes of natural gas spot price (Henry Hub) and Nymex Henry Hub future price; they have started the week with light falls, then switched to rises, and by the end of the week natural gas prices sharply fell.
EIA Natural gas report – highlights:
The underground natural gas storage (Billion Cubic Feet) rose for the twenty-third straight week; last week by 87 Bcf to reach 3,112 billion cubic feet for all lower 48 states; the natural gas storage was still 1.6% below the 5-year average.
The chart below shows the natural gas storage (weekly figures) and Henry Hub natural gas prices in 2011.
To sum up, natural gas storage, imports and production inclined while natural gas consumption fell during the week of September 9th.
For further reading:
Previous issues of weekly report: