US Natural Gas Contract Price for August 2007 (Alert)

The monthly US FERC Houston Ship Channel natural gas price index fell $1.15 USD to $5.64 USD/MMBtu for August. The index price adjusted down strongly under price pressure that developed at the end of July. Despite near record natural gas inventories, prices have begun to rebound up in early August. US natural gas stock levels are still quiet strong, holding nearly 4% above the level recorded for this week last year and nearly 16% above the 5-year average. The current Henry Hub spot cash gas price was posted at $7.15 USD at the close of business on 13 August and broke above $8.50 USD/MMBtu for December. News of potential tropical storms and hurricanes impacting the US Gulf of Mexico appears to be driving some of the price directions.