North America gas weekly update: Market braces for fifth consecutive triple-digit storage build

Henry Hub gas prices for the prompt NYMEX November 2022 contract have collapsed below $6/mmbtu. That’s more than $3/mmbtu lower than just a month ago What’s changed since then? • US gas production has ramped up to record highs. • Early winter season heating loads have yet to persistently materialize. • Late injection season storage builds have ramped up significantly as a result. Although a temporary cold front will halt the triple-digit weekly injections for next week’s EIA report, a quick warm-up will potentially result in one more triple-digit storage injection this season. Lingering storage increases into mid-November, based on mild short-term weather forecasts, may decay the winter risk premia even further. As this occurs, Henry Hub gas prices may continue their descent lower.