Henry Hub prices under pressure from stronger injections26 April 2017
Improving net injection rates at gas storage facilities in the United States have caused some weakness in futures and spot prices at the Henry Hub. Injection rates are expected to rise further in May, the end of the shoulder months. Nevertheless, there is still cause for concern as US gas stocks remain low on an annual basis as the country moves into summer.
The Henry Hub front-month futures price is trading at around $3/MMBtu, lower than the average of $3.23/MMBtu it traded at during the first half of April. Meanwhile, the Henry Hub spot price was $2.99/MMBtu at the close of trade on Tuesday. GGA forecasts the front-month price will average $3.1/MMBtu in April as a whole and $2.9/MMBtu in May. Mild weather and rising gas production are supporting higher rates of injection.
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