Forward and futures markets
Henry Hub futures have upside potential during the summer as industrial gas demand rises in states such as Louisiana.
The increase will come despite growing gas production in the US and prospects for weak demand from the residential, commercial and power sectors. The tightening gas market in Louisiana will be a key factor in high Henry Hub prices during the summer (June- August). Louisiana is expected to increase its reliance on gas stocks during the summer, resulting in further net drawdowns. This will also support Henry Hub futures.
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