Natural gas market continues to cool down in the US as the natural gas prices (Henry Hub) keep on falling and the natural gas stocks keep on rising.
Here is a summary of the recent U.S natural gas market EIA report regarding the week ending on June 24th:
Natural gas Storage
The underground natural gas storage (Billion Cubic Feet) keeps on rising as it rose for the twelfth straight week; last week it rose by 3.3% or by 78 Bcf; as a result, the natural gas storage inclined to 2.432 billion cubic feet for all lower 48 states – the highest stock since January 21st, 2011; 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.
This rise in storage was primarily due to a 55 Bcf injection in the Eastern Consuming Region natural gas storage.
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 .
The natural gas consumption continue to moderately incline as part of the seasonality effect as its estimated to rise by 2.3% during last week compared with the previous week’s average consumption. The residential and commercial sectors along with the industrial sector led the charge with a 7.5% rise for the industrial sector. The power sector consumption declined by 4.1% over last week.
Production and Imports
The U.S. natural gas production reached an average of 64.4 Bcf per day as it declined last week by 0.7% compared with last week’s but it’s 6.4% above last year’s.
The imports of natural gas from Canada averaged at 5.8 Bcf per day, as they rose by 8.8% compared with last week’s average import flow; they remained 20.3% above last year’s volume.
According to the report the natural gas rig count rose by 3 during the week to reach 873.
The US temperatures were warmer last week and reached a weekly average of 73.7 degrees for the week ending on June 23rd, which were 3.6 degrees warmer than last week’s and 1.7 degrees warmer than normal.
Prices for the week ending June 24th
Natural gas spot price (Henry Hub) declined during the week by 3.23% and reached on Friday June 24th $4.19/mmbtu – the lowest price since May 20th; its average daily change was -0.92%, and its weekly average price was 5.22% below the previous week’s average price.
The Nymex Henry Hub Future Price (July delivery) also declined by 2.02% during the week, and its average price was 4.86% below last week’s average price.
To sum up, natural gas storage, consumption and imports inclined, while natural gas prices and production declined during the week of June 24th.
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