Commodity Market Report
North America gas short-term outlook: Winter price premia added back quickly
Report summary
Henry Hub prompt month gas prices rallied quickly to $2.70/mmbtu after continuing its summer spiral downward barely above $2.00/mmbtu in early August. Although tempering in recent days and forecasted to settle at $2.50/mmbu, a near 50 cent price rally was brought upon by extended warmth, an over weighted financial short positioning reducing exposure, and some signs of stymied production growth. We have maintained that it was too early to discount the upcoming winter and not surprised that we have added back the winter price premia. Further out the curve, Henry Hub prices have appreciated less with likely producer hedging at play. Our end of March 2020 storage levels return back above the five-year average. With shoulder season and falling demand levels upon us, will Henry Hub prices maintain its recent gains? Extended October warmth raises power demand but delays larger heating loads.
Table of contents
- No table of contents specified
Tables and charts
No table or charts specified
What's included
This report contains:
Other reports you may be interested in
Commodity Market Report
North America Crude Markets short-term outlook: May 2024
TMX construction is complete. What will system start-up and ramp-up look like?
$3,500
Insight
Gas watts up: Exploding data center growth & US gas market implications
Today’s data centers are power hungry and its growth trajectory highly uncertain
$950
Insight
Industry readying for another clash over US EPA’s carbon emissions rule
New emissions regulations for the power sector headed for litigation over agency's authority, impact on reliability
$1,100