Americas Price trends
Forward and futures markets
Speculative trading is expected to bring the Henry Hub front-month futures price under pressure during the shoulder months.
The front-month price has been driven by speculation, and the trend could continue. Too much focus on rising shale gas production in the US created a significant price differential between the Henry Hub spot and front-month prices in January. Consequently, the spot price traded at an average premium of $0.72/MMBtu over the front-month. The price premium could widen once again during the summer, when power...