Natural Gas Update July 29 2010

Natural Gas Update July 29 2010

Since Wednesday, July 21, natural gas spot prices were mixed over the last week. The Henry Hub natural gas spot price rose $0.05, or about 1 percent, averaging $4.75 per MMBtu in trading yesterday. Natural gas prices fell at the majority of market locations since last Wednesday, while a significant number of market locations posted gains on the week. These declines were likely the result of warm temperatures easing somewhat in these regions during the report week. Price increases generally occurred in the central areas of the lower 48 States, including the Midwest and most of the markets near the producing areas of the Gulf of Mexico. At the Henry Hub, prices rose about $0.05, or about 1 percent, since last Wednesday. At the NYMEX, the 12-month strip (or the average price of futures contracts from August 2010 through July 2011) averaged $5.00 per MMBtu in trading on Wednesday, July 28, rising by about $0.07 on the week.  The futures contract for August delivery at the Henry Hub expired yesterday at $4.774 per MMBtu, climbing by $0.26 or about 6 percent since the previous Wednesday. Natural gas futures prices for delivery during the remaining injection season months (August through October 2010) averaged $4.75 per MMBtu, increasing by an average of about $0.22 since last Wednesday. Meanwhile, prices for delivery during the heating season (November 2010 through March 2011) averaged $5.15 per MMBtu, increasing $0.04 on the week. The spot price for West Texas Intermediate (WTI) crude oil increased by $0.79 per barrel since Wednesday, July 21, ending the report week at $77.06 per barrel or $13.29 per MMBtu.


12/24/36-Month Strip (NYMEX) Price

         12-Month Strip                         24-Month Strip                    36-Month Strip

         $5.074 MMBtu                         $5.235 MMBtu                    $5.353 MMBtu   


Natural Gas Storage Facts

 EIA (Energy Information Administration) reported an net injection of 28 BCF (billion cubic feet) for the week ending 7/23/2010.

Inventories are at 2,919 BCF, which is down –3.1% or 94 BCF from last year and 239 above  the 5-year average  or 8.9%. 

/ Executive Market Summary

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