On the Intercontinental Exchange (ICE), natural gas futures available for trade in the next 12 months at Henry Hub were relatively flat in August 2014 when compared to the previous month, as cool temperatures persisted in much of the country. The average price of Henry Hub natural gas in August 2014 for September 2014-September 2015 contracts (represented above by the orange line) dropped by 2% to $3.93 USD/MMbtu when compared to July 2014 (represented above by the blue line) for delivery in the same period.
When compared to last month, Henry Hub natural gas futures in August 2014 fluctuated 1% less, varying between $3.79 USD/MMbtu (May 2015) and $4.14 USD/MMbtu (January 2015) for delivery in the next 12 months. Data from ICE suggests the spread between August 2014 and previous month contracts (represented above by the red bar) dropped by $0.08 USD/MMbtu until September 2015.
For the week ending August 20, 2014, EIA’s “Natural Gas Weekly Update” reported that temperatures in the lower 48 states averaged 23 Celsius in the fourth week of August 2014, below the 30-year normal temperature. Also, storage builds from the previous period were larger than market expectations of 84 billion cubic feet (Bcf) by 4 Bcf, with all 3 regions posting larger-than-average builds during this period.
Data Sources: ICE