Henry Hub rallies after EIA raises estimate
The November gas supply contract at Henry Hub, the US benchmark for natural gas, was up 2.53% early October 14, one day after the EIA raised its forecast for the monthly average.
Henry Hub followed in the footsteps of the Dutch TTF contract, which was trading up some 9% early in the session. The US benchmark was up some 2.6% as of 06:50 ET to trade at $5.74/mn Btu.
The rally followed an increase from the US Energy Information Administration of its estimate for the spot price. The agency in its monthly market report raised its estimate for Henry Hub by some 45% from the September forecast to $5.80/mn Btu on average for October, but suggested the price would moderate to around $4.00/mn Btu next year.