July 26, 2012
Natural gas prices rose over the report week (week ending Wednesday July 25, 2012). The Henry Hub price rose from $2.84 per MMBtu last Wednesday to $3.19 per MMBtu on July 25. This marked the first time in 2012 that Henry Hub prices crossed the $3.00 per MMBtu mark. August At $3.070 per MMBtu natural gas contracts on the New York Mercantile Exchange , which expire Friday, showed a 3.3 percent increase over the previous week’s price of $ 2.973 per MMBtu...
“Above normal temperatures still are a positive for natural gas prices though the current forecast is not as severe as the temperatures actually were back in June,” per the Energy Management Institute’s Dominick Chiricella. According to BENTEK Energy LLC total natural gas consumption for the week was up 1.2 percent. Early this year with decade-low pricing below $2.00 per MMBtu many utilities were prompted to switch from coal to natural gas to generate power, However some energy traders caution that as gas prices rise above the $3.00 mark, utilities that switched over to gas may move back to coal.
Working natural gas storage increased to 3,189 Bcf as of Friday, July 20 according to EIA’s Weekly Natural Gas Storage Report. Inventories are currently 487 Bcf greater than last year at this time and 435 Bcf greater than the 5 year average.
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**This analysis contained herein is based upon information Energy-Tel, LLC reasonably believes to be accurate. However, they do not guarantee the accuracy of the analysis.**
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