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...