Last week the price of natural gas declined a little. On July 27th the spot price at Henry Hub lost 18 cents, thus declining from $ 4.64 per 1MMBtu down to $ 4.46 per 1MMBtu. According to the EIA, the volume of gas reserves increased up to 2714Bcf.
The analysts for Forex.com, number 1 in the rating of FX brokers by , assume that the prices for natural gas declined throughout the country probably due to last week’s lower (not so hot) temperatures. On July 21st the zone of Transcontinental Gas Pipe Line saw a price increase up to $14.50. By July 25th they fell down to $5 per MMBtu.
The import of natural gas from Canada grew as the result of higher demand throughout the week mainly to produce electricity. According to Bentek Energy Services, LLC., the US import of gas from Canada increased by 7%. The net volume of gas used to produce electricity gained 12.3% as opposed to the previous week.
According to the EIA’s weekly report, the US gas inventories gained 43Bcf, which is still 201Bcf lower than during the same period of 2010. In the East of the country the inventories turned out to be 122bcf lower than the 5-year average, while in the West of the country the inventories turned out to be only 18bcf lower than the 5-year average.
Despite the yea-to-year reduction of gas supplies, July’s supplies were higher than July’s ones. Another piece of news is worth paying attention to: last week El Paso Corporation started a new pipe line called “Ruby". Its capacity is 1.5Bcf a day.
According to the Department of Commodity Trading, , that growing gas inventories and more substantial supplies will make gas prices decline until September (the beginning of new seasonal trend).
