Natural gas storage keeps on stocking up, while production and imports keep on rising; last week natural gas prices (Henry Hub) moderately inclined, but they are currently falling and the natural gas market is cooling down.
Here is a summary of the recent U.S natural gas market EIA report regarding the week ending on July 1st:
Natural gas Storage
The underground natural gas storage (Billion Cubic Feet) inclined for the thirtieth straight week; last week it rose by 3.9% or by 95 Bcf; as a result, the natural gas storage inclined to 2.527 billion cubic feet for all lower 48 states – the highest stock since January 21st, 2011; the natural gas storage is still 1.9% below the 5-year average, and 8.1% below the storage level during the same week in 2010.
This rise in storage was primarily due to a 62 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 price is still lower by $0.34/mmbtu compared with its price level the same week last year; the chart also shows that the current rise in the Natural Gas storage is part of the seasonal stock up.
The natural gas consumption fluctuated very rapidly during last week, only to end up 4.7% above the previous week’s average consumption. The power sector led the charge with a 12.3% over last week and 13.1% over the same week in 2010.
Production and Imports
The U.S. natural gas production reached an average of 64.7 Bcf per day as it very moderately inclined last week by 0.4% compared with last week’s average production.
Natural gas imports from Canada rose by 122.4% compared with last week’s average import flow, but the LNG imports keep on falling as they fell last week by 29.5%; the imports from Canada were still 9.8% below last year’s volume, and LNG imports were 47.7% below.
According to the report the natural gas rig count rose by 1 during the week to reach 874.
The US temperatures were a bit cooler than last week and reached a weekly average of 73.1 degrees for the week ending on June 30th, which were 2.4 degrees cooler than last year, and 0.1 degrees cooler than normal.
Prices for the week ending July 1st
Natural gas spot price (Henry Hub) rose during last week by 1.65% and reached on Friday, July 1st $4.32/mmbtu; its average daily change was 0.58%, but its weekly average price was 0.23% below the previous week’s average price.
The Nymex Henry Hub Future Price (short term delivery) also rose by 1.27% during last week, and its average price was 0.74% above last week’s average price.
To sum up, natural gas prices, storage, consumption, production and imports inclined during the week of July 1st.
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