The natural gas market cooled down during last week. United States Natural Gas (UNG) also decreased last week. According to the latest U.S Energy Information Administration weekly report, last week’s natural gas injection was slightly above the five year average. Will the price of natural gas keep falling? Let’s review the recent developments to the natural gas market.
During the previous week, the price of Henry Hub (short term delivery) dropped by 3.1%. Moreover, United States Natural Gas also declined by 3.4%. As of last week, the Henry Hub price remained $0.87 per million BTUs above the price during the same week in 2013. Last week’s fall in the price of natural gas may have dragged down shares of natural gas related companies such as Cheniere Energy (LNG): During last week, Cheniere Energy’s stock decreased by 2.5%.
Storage
Based on EIA’s last weekly report, the underground natural gas storage grew by 74 Bcf and reached 1,055 Bcf. In comparison, back in 2013, the storage increased by 88 Bcf; the five years average injection was 72 Bcf. Therefore, last week’s injection was slightly above normal. The current storage for all lower 48 states remains 43% lower than last year’s storage and 48.6% below the 5-years average.
The rest of this analysis is at Seeking Alpha
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