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Markets & Forecasts

Markets stunned as Henry Hub approaches $5/MMBtu

The Henry Hub front-month futures price is rising towards $5/MMBtu, rattling gas and LNG markets given the US has yet to see the worst of the winter weather The Henry Hub front-month futures price is rising towards $5/MMBtu, rattling gas and LNG markets given the US has yet to see the worst of the winter weather.
By Abhishek Kumar 20 November 2018 Americas / Global Markets 0 33364
GGA forecasts that the US will end the withdrawal season with only around 30 bcm of gas in storage. (Wikicommons)

Directional impact on forecast:
Bullish for Henry Hub prices

Gas price volatility has returned, driven by depleted storage inventories at the start of the withdrawal season in the United States. The US gas market is in uncharted territory, and the prevailing bullish sentiment is pushing the Henry Hub front-month futures price up towards $5/MMBtu. This in turn risks denting the competitiveness of gas in the country’s power generation mix and reducing the appeal of Henry Hub-indexed LNG on the global market.

The front-month price...