Henry Hub falters on Oct 28
The price for the December contract for Henry Hub, the US benchmark for the price of natural gas, was trending lower early October 28 after another rally during the previous session.
Henry Hub was down 1.45% as of 11:23 GMT to $6.11/mn Btu, in a possible sign of profit-taking. That follows a 5.4% rally during the previous session. So far, the US benchmark is up some 16% on the week. Henry Hub was trading near $2.33/mn Btu at this point in 2019, to discount comparisons to the weak economy during the pre-vaccine pandemic last year.
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An 11% rally on October 25 greeted a forecast of a La Nina weather pattern that could bring cold temperatures to the US south. That sparked fears of a repeat of Winter Storm Uri, a February freeze event across southern US states that idled large parts of the nation’s energy sector.
Just as soaring crude oil prices have caught the attention of the White House, domestic lawmakers are starting to react to the exponential rise in natural gas prices.
Texas congressman Joaquin Castro, a Democrat representing Texas, introduced a bill on October 27 that seeks to prevent artificial spikes during emergency events.
“This bill will identify those who have unfairly profited from the Texas winter storm and put in place safeguards to prevent any future entity from price gouging Americans during an emergency,” he said.