US Henry Hub stable on Dec 2
The US benchmark for the price of natural gas was holding steady early in the December 2 session, but forecasts of strong LNG demand could add a long-term premium.
The January gas delivery contract at the US Henry Hub was up just 0.1% as of 12:25 GMT at $4.26/mn Btu. The contract has been on a downward trend for much of the week.
Pressure from the Omicron variant of the novel coronavirus that causes COVID-19 may be fading as health officials come to better understand the symptoms, though the arrival of the first case in the US on December 1 may still unsettle markets in the world’s largest economy.
Overseas, meanwhile, analysis from energy consultant group Wood Mackenzie finds Asian demand for LNG and bottlenecks at the Panama Canal could be supportive of prices.
“Combined with less LNG supply growth than previously forecast as projects under construction in Canada and Africa signal delays, we now see gas prices at higher levels than had been expected through to 2025,” a note published December 2 read.
Elsewhere, a mild winter so far for the continental US is keeping Henry Hub away from late October highs above $6/mn Btu. The National Weather Service reports that a “tranquil weather pattern” is expected to linger over the Lower 48 states through the end of the week.
“As a result, above average temperatures are forecast for nearly the entire country over the next few days,” its latest forecast read.