Friday, October 2, 2015

Natural Gas: EIA Weekly Supply/Demand Report

From the Energy Information Administration:

(For the Week Ending Wednesday, September 30, 2015)
  • Natural gas prices declined in most market locations, falling from already generally low levels, over the report week (Wednesday, September 23, to Wednesday, September 30). The Henry Hub spot price fell from $2.59 per million British thermal units (MMBtu) last Wednesday to $2.47/MMBtu yesterday.
  • At the New York Mercantile Exchange (Nymex), the October contract expired on Monday at $2.563/MMBtu, and the November contract moved into the near-month position. Over the report week, the November contract fell from $2.638/MMBtu last Wednesday to $2.524/MMBtu yesterday.
  • Working natural gas in storage increased to 3,538 Bcf as of Friday, September 25. A net injection into storage of 98 Bcf for the week resulted in storage levels 15% above a year ago and 5% above the five-year average for this week.
  • The total rig count declined by four units from the previous week, with 838 units in service as of September 25, according to data released by Baker Hughes Inc. This was 1,093 units below the number of rigs during the same week last year. The oil rig count decreased by four units to 640, while the gas rig count declined by one unit to 197. The natural gas plant liquids composite price at Mont Belvieu increased by 3.1% to $5.01/MMBtu for the week ending September 25. Butane and isobutane prices both increased by 5.7%, and propane and ethane prices increased by 4.4% and 2.5%, respectively. The natural gasoline price fell by 0.9%.
  • Hurricane Joaquin strengthened to a Category 4 storm on Thursday, which includes winds of up to 156 miles per hour. The storm's path is uncertain but could make landfall on the East Coast this weekend, when power outages are a possibility.

Prices decline at most areas outside the Northeast. The Henry Hub spot price fell 12¢ from $2.59/MMBtu last Wednesday to $2.47/MMBtu yesterday. Similarly, at the Chicago Citygate, spot prices fell from $2.65/MMBtu last Wednesday to $2.56/MMBtu yesterday. Prices moved in similar patterns at most market locations other than the Northeast.

Northeast prices fluctuate. At the Algonquin Citygate, which serves Boston-area consumers, prices began the week at $2.00/MMBtu before falling to $1.66/MMBtu on Friday. Prices closed the report week at $1.95/MMBtu. At Transcontinental Pipeline's Zone 6 delivery point into New York City, prices began the week at $2.31/MMBtu, hit a weekly low at $1.53/MMBtu on Friday, and settled at $2.44/MMBtu yesterday....MUCH MORE
Front futures $2.4310 down 0.002 and looking bullish vs. yesterday.