Henry Hub loses steam on Oct 29
The December gas supply contract at the US Henry Hub tumbled further in the October 29 trading session following indications of more production arriving on the market.
The contract was down some 1.8% as of 11:23 GMT to trade at $5.68/mn Btu. The had price rallied some 11% during the first trading session of the week on fears of inclement winter weather, but has since retraced some of its steps.
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Henry Hub ended the trading day down 6.7% during the previous session on assurances from Russian president Vladimir Putin that European gas storage levels would be adequate during the winter heating season. That could be a reflection of early-morning losses in the Dutch TTF contract.
But a dispute over gas supplies to Moldova could spook the market as the former Soviet Republic finds itself stuck in a tug of war between Moscow and the EU. While lacking the transit gas networks of Ukraine, which saw its Crimean peninsula annexed by Russia over a similar row, the geopolitical situation with Moldova could escalate to a showdown over spheres of influence.
In the US market, meanwhile, the latest weekly report from the Energy Information Administration finds domestic supplies of natural gas are up as a result of increased production, easing at least some of the fears about the tight market.