Let’s examine the expectations of natural gas spot price direction in the next several days:
As of 13.41 PM GMT, natural gas future price (Henry Hub) declined by 1.28% or 0.05$/mmbtu to reach 3.85$/mmbtu.
As we have seen all week (even for this short week…) there wasn’t a clear trend in natural gas prices, as Henry Hub spot price fell by 0.5%, Henry Hub future prices rose by 0.5% and NY city gate fell by 2.8%.
Natural gas spot price Outlook:
There are still cold fronts, mainly wind and rain in several parts n the US, however the extreme cold weather continues to subside and resulting in natural gas consumption decline. According to the recent forecasts, there are expectations of some spring storms in the South and snow in Washington.
If I would to speculate, I still think that we will continue seeing a downward trend in natural gas prices as we are exiting the winter in the US.
Today the EIA will publish its weekly report on natural gas storage, consumption and production: it will probably continue showing a decline in storage as it did last week. For last week’s review see here.
Here is a reminder of the top news that will be published today that might influence oil and gas prices (all times GMT):
13.30PM – Department of Labor report – US unemployment claims
13.30PM – US Department of Commerce – Report on Durable Goods
15.30PM – EIA report about Natural gas storage
15.30PM – EIA report about Crude oil inventories
9.00AM – Monetary developments in the euro area
09:30AM– Great Britain GDP 4Q report
13:30PM– US GDP 4Q report
For further reading (on this site):
- Natural gas prices outlook for February 2011
- Natural gas prices naturally fell – Weekly recap 14-18 February