Natural Gas Report: Storage Builds as Henry Hub Places 12-Week Low

November 7, 2013 09:01 AM

  •  Inventories stand at 3,814 Billion cubic feet (Bcf) -- 2.9% below year-ago and 1.9% above the five-year average.
  • This week notes a 35 Bcf gain in storage, right in line with expectations.
  • Residential and commercial demand weakened, pressuring prices lower.
  • December '13 WTI crude opened today at $94.91 with the Brent/WTI spread narrowed $3.15 from last week's peg today to $10.03.


December 13 natural gas opened today at $3.495 and and moved marginally higher as the news of the 38 Bcf storage build pressured prices lower. A violation of $3.37 would clear bears' path to $3.15 from February. The next resistance hurdle will be pivots around $3.65 and above that $3.91.b628db8475033f6f7fd490eeebf1f94c

Delivery constraints continue to plague LP. Hours of Service Waivers are in place in several Midwestern states, particularly in the north. Some of these waivers will be in effect until Thanksgiving.

Average temperatures in the continental United States were 2.7 degrees cooler than the same time last year and 0.9 degrees below the 30-year average.

Prices --

The Henry Hub spot price fell a dime over the report week to $3.45/MMBtu yesterday from $3.55 last Wednesday. This week marks the Henry Hub's lowest price point in 12 weeks.

Consumption --

Consumption decreased by 3.5% from the previous week, led by decreases in residential and commercial consumption and a 7.1% falloff in power sector consumption, as air conditioner use winds down.

Dry gas production increased on the week by 0.5%; Net natural gas imports from Canada fell 8.9%; LNG imports rose 11.5%.

Storage --

Working natural gas in storage rose to 3,814 Billion cubic feet as of Nov. 1. The 35-Bcf gain in storage levels was much larger than last year at the same time when injections totaled just 27-Bcf and slightly less than the five-year average build of 36-Bcf.


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