The natural gas prices, as expected, continued their decline even though the natural gas production and consumption in the U.S remained robust throughout the month of September. By the end of September the Henry Hub spot price fell sharply below price level from the beginning of September. What is up ahead for U.S. natural gas prices in October? Let’s examine the changes in the natural gas prices during September 2011 and provide an outlook for natural gas prices for October 2011:
Natural Gas Prices September 2011- Analysis
Let’s first examine how natural gas prices (Henry Hub) shifted during September: the Henry Hub natural gas spot and future prices started the month with very sharp falls that followed by moderate changes until the end of the month when both crude oil and natural gas prices sharply declined. This turn of events was probably stem, in part, from the Fed chairman’s announcement of a limited stimulus plan that was less than expected by the market.
By the end of the month, the Henry Hub spot price fell by 7.30% and the future price decreased by 9.57%.
Let’s divide September into two parts as seen in the table below: from 31/8 to 15/9 and from 15/9 to 30/9; during the first part of September the Henry Hub spot price slightly inclined; during the second part of the month, the Henry Hub spot and future prices sharply fell by -9.16% and 5.36%, respectively. The table below summarizes these findings:
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