Natural gas prices (Henry Hub) changed directions several times during the week, but ended with moderate rises and thus breaking the downward trend they had during previous weeks.
Here is a short review of the main changes in natural gas prices for the week ending on July 1st:
Natural gas prices 2011 June – Review and Analysis
Natural gas spot price (Henry Hub) rose during the week by 1.65% and reached on Friday to $4.32/mmbtu; its average daily change was 0.58%, but its weekly average price was 0.23% below the previous week’s average price.
The Nymex Henry Hub Future Price (July delivery) also inclined by 1.27% during the week, and its average price was 0.74% above last week’s average price.
The spread 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) shifted directions several times during the week; it was mostly in Backwardation (i.e. the spot price was higher than spot price), but ended the week at -$0.01/mmbtu.
Natural gas prices chart
The following chart present the daily changes of natural gas prices (Henry Hub) and futures prices (Nymex Henry Hub) in $/mmbtu during June 27 to July 1.
The chart shows natural gas prices rose during the first half of the week; during the second half of the week, Henry Hub spot price and future price zigzagged and eventually ended moderately higher than their prices at the beginning of the week.
The second chart presents the daily percent changes of natural gas prices (Henry Hub) and Nymex Henry Hub, (the changes around the weekly trend); it shows that natural gas prices rose at the beginning of the week by over 2%, but afterwards zigzagged with more moderate percent changes.
EIA Natural gas report – highlights:
The underground natural gas storage (Billion Cubic Feet) have inclined last week by 3.3%; thus, the natural gas storage inclined to 2.432 billion cubic feet for all lower 48 states; the natural gas storage is still 2.5% below the 5-year average, and 9.1% below the storage level during the same week in 2010.
The chart below shows the natural gas storage (weekly figures) and Henry Hub natural gas prices during 2010-2011; the chart shows that natural gas spot prices are still lower by $0.6/mmbtu compared with their price level the same week last year; the chart also shows that the current stock up in the Natural Gas storage is part of the seasonal stock up.
To sum up, natural gas storage, consumption and imports inclined, while natural gas production declined during the week of June 24th.
For the complete natural gas market report, see here.
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For further reading:
Previous issues of weekly report:
- Natural gas prices declined during the week – June 20-24
- Natural gas prices fell sharply during the week – June 13-17
- Natural gas prices start June with rises – 31 May to June 3