Nat Gas prices drop sharply, storage levels up 10% Y-Y

By Roger Baettig | September 22 2012 8:39 AM

Benchmark US Nat Gas prices fell sharply over the past week as cooler weather reduced demand for electricity to power air conditioners, the Energy Information Administration said.

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Henry Hub Nat Gas as of 19 September was $2.70 per million British thermal units, -0.17, or 5.9%, from a week earlier. In NYMEX futures trading 20 September, Oct Nat Gas rose 0.035 to $2.797, still down 0.146, or 5%, from the end of last week.

During the week ending 19 September, US Nat Gas consumption fell 3.7% from the prior week, led by a drop 13% in power sector demand. The past week’s consumption was still up 5.2% from a year earlier.

Working Nat Gas in underground storage increased to 3.496-T cubic feet as of 14 September, an implied net injection of 67-B cubic feet from the prior week and an increase of 10% over year-ago levels.

Paul A. Ebeling, Jnr.Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.