...Overview:
(For the week ending Wednesday, June 17, 2020)
- Natural gas spot prices fell at most locations this report week (Wednesday, June 10, to Wednesday, June 17). The Henry Hub spot price fell from $1.70 per million British thermal units (MMBtu) last Wednesday to $1.48/MMBtu yesterday.
- At the New York Mercantile Exchange (Nymex), the price of the July 2020 contract decreased 14¢, from $1.780/MMBtu last Wednesday to $1.638/MMBtu yesterday. The price of the 12-month strip averaging July 2020 through June 2021 futures contracts declined 7¢/MMBtu to $2.361/MMBtu.
- The net injections to working gas totaled 85 billion cubic feet (Bcf) for the week ending June 12. Working natural gas stocks totaled 2,892 Bcf, which is 33% more than the year-ago level and 17% more than the five-year (2015–19) average for this week.
- The natural gas plant liquids composite price at Mont Belvieu, Texas, fell by 18¢/MMBtu, averaging $4.42/MMBtu for the week ending June 17. The prices of natural gasoline, ethane, butane, and propane, fell by 16%, 4%, 3%, and 2%, respectively. The price of isobutane remained flat week over week.
- According to Baker Hughes, for the week ending Tuesday, June 9, the natural gas rig count increased by 2 rigs to 78 rigs. The number of oil-directed rigs fell by 7 rigs to 199 rigs. The total rig count decreased by 5 rigs, and it now stands at 279 rigs.
Prices/Supply/Demand:
Henry Hub prices reach 21-year lows, and prices at most trading hubs fall. This report week (Wednesday, June 10, to Wednesday, June 17), the Henry Hub spot price fell 22¢ from a high of $1.70/MMBtu last Wednesday to $1.48/MMBtu yesterday. Henry Hub reached a low of $1.38/MMBtu on Tuesday, the lowest price since December 1998 in nominal terms, according to Natural Gas Intelligence, because of weakened demand from mild U.S. temperatures and low demand for global liquefied natural gas (LNG). Temperatures were cooler than normal on both coasts and generally warmer than normal across the Rocky Mountain region and the Upper Midwest. At the Chicago Citygate, the price decreased 10¢ from a high of $1.61/MMBtu last Wednesday to $1.51/MMBtu yesterday....
