Natural gas prices didn’t do much last week– 22-26 August

Natural gas prices (Henry Hub) started off the week with rises that soon turned into falls; by the end of the week, natural gas prices didn’t do much and finished the week near the same price they have started. There are concerns in regards to the effect of the Hurricane Irene on natural gas market in the US.  

By the end of the week, the Nymex Henry Hub Future Price (September delivery) ended the week at $3.93/ MMbtu, and the Henry Hub spot price ended at $3.96/ MMbtu.

 Here is a short review of the main changes in natural gas prices for the week ending on August 26th:

Natural gas prices 2011 August – Review and Analysis


table natural gas spot price Henry Hub -  22-26 August 2011

Natural gas spot price (Henry Hub) slightly decreased during the week by 0.25% and reached on Friday $3.96/mmbtu; its average daily change was -0.14%, and its weekly average price was 0.05% above the previous week’s average price.

The Nymex Henry Hub Future Price (September delivery) on the other hand slightly inclined by 1.05% during the week, but its average price was 0.3% below 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) remained in backwardation during the week, and by Friday it reached -$0.03/mmbtu.

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 22-26.


natural gas price Henry Hub chart -  22-26 August 2011

The chart shows natural gas prices started off the week rising and soon afterwards they have declined; finally, they have finished the week near the same price the Henry Hub started.


natural gas SPOT price chart - percent change Henry Hub  22-26 August 2011

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 rises to falls nearly each day..  

 EIA Natural gas report – highlights:


 The underground natural gas storage (Billion Cubic Feet) rose by 2.6% to 2,906 billion cubic feet for all lower 48 states.

The chart below shows the natural gas storage (weekly figures) and Henry Hub natural gas prices during 2011.

natural gas prices chart 2011 (Henry Hub Natural Gas storage 2011 August 26

To sum up, natural gas storage, production, imports and consumption inclined while natural gas prices fell during the week of August 19th.

For the complete natural gas market report, see here.


 For further reading:

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