Friday, May 13, 2016

Natural Gas: EIA Weekly Supply/Demand Report

June Futures 2.090, down 0.065. Here's the last two weeks action via FinViz:

From the Energy Information Administration:

(For the Week Ending Wednesday, May 11, 2016)
  • Natural gas spot prices fell at most locations this report week (Wednesday, May 4, to Wednesday, May 11), with a few scattered price increases. Declines in northeastern market areas were substantial. The Henry Hub spot price posted a 2¢ increase from $1.99/MMBtu last Wednesday to $2.01/MMBtu yesterday.
  • At the New York Mercantile Exchange (Nymex), the June 2016 contract price also rose slightly over the report week, from $2.141/MMBtu last Wednesday to $2.173/MMBtu yesterday.
  • Net injections to working gas totaled 56 billion cubic feet (Bcf) for the week ending May 6. Working gas stocks are 2,681 Bcf, which is 44% above the year-ago level and 44% above the five-year (2011-15) average for this week.
  • According to Baker Hughes data, for the week ending May 6, the natural gas rig count fell by 1 to 86, and oil-directed rigs fell by 4 to 328. The total rig count fell by 5, and now stands at 415.
  • The natural gas plant liquids (NGPL) composite price at Mont Belvieu, Texas, fell by 0.6% to $4.97/MMBtu for the week ending Friday, May 6. The prices of ethane and natural gasoline declined by 4.3% and 5.3%, respectively. Butane, propane, and isobutane rose by 1.7%, 2.3%, and 2.4%, respectively....
...January futures price continues to trade at more than $1 above current spot price. Decisions about whether to inject gas into storage during the refill season are often made with an eye toward the upcoming January, because it is typically the coldest winter month. During the most recent storage week, the average natural gas spot price at the Henry Hub was $1.94/MMBtu, while the Nymex futures price of natural gas for delivery in January 2017 averaged $3.11/MMBtu, a difference of $1.17/MMBtu. A year ago, the premium was 52¢/MMBtu, suggesting there is more financial incentive this year to buy and store natural gas in the summer for sale in the winter. The average Henry Hub price so far in the injection season this year, from April 1 to May 6, was $1.91/MMBtu, 27% lower than the average value of $2.60/MMBtu for the same period last year....