Henry Hub extends rally
The December gas delivery contract at the US Henry Hub was trending higher early on November 8 following a 1.7% rally during the previous week.
The contract was up 0.6% as of 12:27 to trade at $5.55/mn Btu. The contract finished trading November 5 at $5.52/mn Btu.
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The US Energy Information Administration will update its forecast for the benchmark on November 9 with the release of its monthly short-term energy outlook. The previous forecast estimated Henry Hub would hit a peak average of $5.90/mn Btu by January before settling in a range of around $4.01/mn Btu for the rest of 2022.
“Given low natural gas inventories in both US and European natural gas storage facilities and uncertainty around seasonal demand, we expect natural gas prices to remain volatile over the coming months, with winter temperatures being a key driver of demand and prices,” the previous forecast read.