Natural gas prices (Henry Hub) slightly inclined during the week and ended August with light gains, after they had fallen during most of the month. There are some concerns regarding the effects the recent weather disruptions could pose on the natural gas production and pipelines, mainly in the East coast of the US and the Gulf of Mexico.
By the end of the week, the Nymex Henry Hub Future Price (October delivery) ended the week at $3.87/ MMbtu, and the Henry Hub spot price ended at $4.10/ MMbtu.
Here is a short review of the main changes in natural gas prices for the week ending on September 2nd:
Natural gas prices 2011 August – Review and Analysis
Natural gas spot price (Henry Hub) increased during the week by 4.33% and reached on Friday $4.10/mmbtu; its average daily change was 0.73%, and its weekly average price was 0.10% above the previous week’s average price.
The Nymex Henry Hub Future Price (October delivery) slightly inclined by 0.34% during the week, and its average price was 0.36% 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) was mostly in backwardation during the week, except on August 30 and 31; By Friday it reached -$0.23/mmbtu – its widest since the first week of August.
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 August 29- September 2nd.
The chart shows that natural gas spot price started off the week with light changes, but during the second part of the week they have picked up and inclined; by the end of the week, the Henry Hub prices have slightly declined.
The second chart shows the daily percent changes of natural gas prices (Henry Hub) and Nymex Henry Hub, (the changes around the weekly trend); it shows the daily shifts of these prices as they have changed directions from falls to rises and then back to falls.
EIA Natural gas report – highlights:
The underground natural gas storage (Billion Cubic Feet) increased by 55 Bcf to 2,961 billion cubic feet for all lower 48 states; the natural gas storage is still 2% below the 5-year average.
This increase in storage was primarily due to a 54 Bcf injection in the Eastern Consuming Region natural gas storage.
The chart below presents the natural gas storage (weekly figures) and Henry Hub natural gas prices during 2011.
To sum up, natural gas storage and production inclined while natural gas imports and consumption fell during the week of August 26th.
For the complete natural gas market report, see here.
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For further reading:
Natural gas prices outlook for August 2011
Previous issues of weekly report: