Supply & Demand

Mild weather to weigh on Henry Hub prices

Mild weather and improving stocks in the South Central Region of the United States will cap gains in Henry Hub prices Mild weather and improving stocks in the South Central Region of the United States will cap gains in Henry Hub prices.
By Abhishek Kumar 14 June 2017 0 26360

Front-month futures and spot gas prices at the Henry Hub have come under pressure because of a mild start to the summer in the United States. Forecasts for below-average temperatures in key demand centres over the coming week will cap gains in prices. This will also help boost gas injection rates in the South Central Region (SCR) of the US, which houses the Henry Hub pricing point, and will be another bearish factor for prices.

Forecasts suggest the eastern US has a 35% chance of below-average...