The Henry Hub front-month futures price is coming under pressure as the United States leaves the peak summer demand period. The focus will now shift to high gas stocks in the country and the implications of lower demand on gas storage during the upcoming shoulder months (September-November).
The US had 93.05 billion cubic metres of gas in storage in the week ending 29 July. This was an increase of 13.4% on an annual basis and 16.4% above the five-year average. A net gas withdrawal of 170 million cubic metres was made during the week – the first July drawdown for the US as a whole since 2006. As a result, the Henry Hub front-month futures price reached an intraday high of $2.89/MMBtu on 4 August.
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