Saturday, June 18, 2011

EIA: Natural Gas Weekly Update....Increases in Inventory Sending Prices Lower


  • The past week was characterized by passing of the earlier week’s heat wave. The Henry Hub price decreased 31 cents per million Btu (MMBtu) for the week (6.4 percent) to close at $4.52 per MMBtu on June 15.
  • During the midst of the heat wave, working natural gas in storage last week rose to 2,256 billion cubic feet (Bcf) as of Friday, June 10, according to the U.S. Energy Information Administration’s (EIA) Weekly Natural Gas Storage Report (WNGSR). The implied increase for the week was 69 Bcf, leaving storage volumes positioned 275 Bcf below year-ago levels.
  • At the New York Mercantile Exchange (NYMEX), the July 2011 natural gas contract price lost every day of the week, closing at $4.577 per MMBtu on Wednesday.
  • The natural gas rotary rig count, as reported June 10 by Baker Hughes Incorporated, fell by 8 to 879 active units, continuing the trend of recent weeks. Meanwhile, oil-directed rigs were up 10 to 969, maintaining the disparity between the two drilling strategies.

NYMEX Natural Gas Futures Near-Month Contract Settlement Price, West Texas Intermediate Crude Oil Spot Price, and Henry Hub Natural Gas Spot Price Graph



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