Weekly Natural Gas -- Sendouts & Prices Increase; Demand & Supply Fall

March 8, 2013 03:45 AM

Natural gas prices rose at most trading points during the report week. The general increase in prices was the result of a week of winter storms and expectations for continued frigid weather.

The Henry Hub price rose 8 cents per MMBtu from $3.49 per MMBtu to $3.57 per MMBtu. On Tuesday (3/5), at $3.63 per MMBtu, the Henry Hub price was at its highest level since November 28.

Currently, April 13 Natural Gas contract at $3.60 -- up $0.024 on the day and climbing (9:30amCT).

Demand/Consumption --

Both demand and supply declined this week. According to BENTEK Energy data, dry production declined by 0.4% from last week, but remains 0.7% above levels a year ago. Pipeline imports of natural gas from Canada declined across the board.

LNG sendout increased from the previous week but remains at minimal levels, averaging 281 MMcf per day. Domestic consumption fell 3.8% week-over, with decreases in the residential and commercial, power burn, and industrial sectors.

Storage --

Working natural gas in storage decreased to 2,083 Bcf as of Friday, March 1, according to EIA's WNGSR. This represents an implied net withdrawal of 146 Bcf from the previous week. Thiseialogo week's net withdrawal was 39 Bcf larger than the 5-year average net withdrawal of 107 Bcf, and 54 Bcf larger than last year's average net withdrawal of 92 Bcf. Inventories are currently 361 Bcf -- 14.8% --less than last year at this time and 269 Bcf -- 14.8% -- greater than the 5-year average of 1,814 Bcf.



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