Losses continue for Henry Hub
The December gas delivery contract at the US Henry Hub extended its decline on November 10, following a loss of just over 8% in the previous session.
The contract was down around 1.8% as of 12:30 GMT to trade at $4.89/mn Btu. The contract finished the previous session down 8.3% to close at $4.98/mn Btu, the first time it dipped below $5.00/mn Btu since October 18.
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Henry Hub has seen falls for three consecutive trading days. On November 9, the US Energy Information Administration (EIA) forecast in its monthly Short-Term Energy Outlook a price average of $5.53/mn Btu through February. From there, it could fall to $3.93/mn Btu for 2022 due in part to higher domestic gas production.
“Because of uncertainty around seasonal demand, we expect natural gas prices to remain volatile over the coming months with winter temperatures to be a key driver of demand and prices,” EIA cautioned.
The contract will be influenced later this week when EIA publishes its weekly report on natural gas. Recent injections have built up US inventories, though storage levels remain below the five-year average for this time of year.