Forward and futures markets
Henry Hub gas prices could make further gains in 2017 despite above-average temperatures in January and February.
The Henry Hub front-month futures price has averaged $3.07/MMBtu so far in February, much higher than the average of $1.93/MMBtu in February 2016. Weather forecasts suggest the Total Degree Days figure in the US will average 751F in winter 2016-2017 (December-February) compared with 708F last winter, which remains a bullish factor for the price. The US entered the current withdrawal season with a gas glut even more severe than at the start of the previous withdrawal season. However, this is not reflected in the Henry Hub price.
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