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Henry Hub trending upward on winter weather forecast

The US benchmark for the price of natural gas has increased more than 7% so far this week

Henry Hub trending upward on winter weather forecast

Source: Pixabay

Washington, December 30 - Neftegaz.RU. The US benchmark for the price of natural gas flirted with $4/mn Btu early in the December 29 session on forecasts of sub-zero temperatures for parts of the country.

Trading now in the February contract, Henry Hub, the US benchmark, was up 2.8% as of 12:32 GMT to trade at $3.99/mn Btu.
Following an 8.8% spike on December 27, the benchmark is so far up more than 7% on the week.

That marks a reversal from trends in the European market, where US LNG deliveries are easing supply-side pressures to pull regional prices away from historic highs.

In US weather, the National Weather Service continues to comment on a patch of chilly air parked over the Northern Plains.
Wind chill advisories are in place for much of Montana and parts of the Dakotas, with the wind pushing the thermometer to as low as minus 50 degrees Fahrenheit (minus 45 Celsius).

Upper elevations in the western mountain ranges are already buried under heavy snow accumulation.
Parts of the lower Great Lakes region can expect a mix of ice and snow over the next few days before heavy snowfall during the weekend.

Portions of the south, meanwhile, are in the midst of something of a warming trend, but that will usher in rains shows and thunderstorms across the region.

For early January, the forecast is for more cold weather that may even affect natural gas production, according to NatGasWeather.

A hypothetical repeat of this year’s Texas Freeze would also affect natural gas production and, as a result, prices.
As a result, demand for natural gas is seen rising to 126.7 billion cu ft daily, according to data from Refinitiv.
That’s up from 110 billion cu ft

Author: Daniel Graeber

Source : Neftegaz.RU


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