Henry Hub prices will receive support for the rest of May as the pace of gas injection into storage in the United States remains low. Prices are set to increase further in June as the start of summer boosts air conditioning-related gas demand in the country.
The Henry Hub front-month futures price reached an intraday high of $3.43/MMBtu on 12 May. This was its highest level since 26 January, and was reached despite the country being in the shoulder months. Unusually high weather-related gas demand in the US has slowed injection rates. GGA expects the net injection to average 1.9 billion cubic metres per week in May 2017 compared with an average of 2.1 bcm per week in May 2016 – a bullish factor for Henry Hub prices.
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