Natural gas prices continued their recent recovery and sharply rose during last week again. This recovery comes after oil prices plummeted last week. There weren't any sharp turns in the fundamentals of the natural gas market so this rally might not last long. Keep in mind that natural gas storage is still high: According to the recent NG storage report, there was a 28 bcf injection; the current natural gas storage is 49.9% above the 5-year average.
Following the sharp movement in natural gas prices, the gap between future and spot also shifted during the week between Contango and Backwardation; it reached a weekly average of $0.07/mmbtu.
During last week the Henry Hub spot price rose by 9.48% while the future price (June delivery) decreased by 2.56%. During April, natural gas spot price increased by 6.57% and the future price (May delivery) by 9.86%.
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