Will Natural Gas Continue to Zigzag in Unclear Trend?

Despite the recent fall in the price of natural gas during last week, the Henry Hub is down by only 1.7% for the month (up to date). United States Natural Gas (UNG) also fell by a similar rate during August. This recent fall came after natural gas recovered a week earlier. Further, natural gas producers including Chesapeake Energy (CHK) and Anadarko Petroleum (APC) also dropped by 3.9% and 1%, respectively, during last week. Will natural gas prices continue to zigzag with an unclear trend in the coming weeks?

Injections to storage remain robust

According the recent EIA weekly report, the recent injection to storage was 78 Bcf; the underground natural gas storage was 2,467 Bcf – close to 20% below the 5-year average. Last week’s injection was 45 Bcf or 73% higher than the 5-year average and 13 Bcf higher than last year’s injection. This high injection pace is likely, at the current pace, bring storage levels to normal by early November.

The rest of this analysis is at Seeking Alpha

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