Henry Hub marching toward $4/mn Btu
The US price of natural gas was reacting to the hyper-rally under way in the European market, spiking toward $4/mn Btu early on December 22.
The January contract at the US Henry Hub was up 7.7% as of 12:32 GMT to trade at $3.95/mn Btu. The price settled higher during the first two trading days of the week.
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A cold winter for Europe, coupled with the lack of pipeline deliveries from Russia, are setting the bloc up for a rough patch of ultra-high prices. While inching a bit lower on the day, the Dutch TTF contract for natural gas was still hovering around €180 (USD $203)/MWh. That works out to be roughly $60/mn Btu. In oil equivalent terms, European gas prices are around $375/barrel.
Winter weather in the United States so far has been exceptionally mild, though the continental United States can expect some volatility over the coming days.
The National Weather Service is forecasting as much as 2 feet (60cm) of snow in the northern Rockies, which would fall as heavy rain on lower elevations. On the other side of the country, as much as 8 inches (20cm) of snow are expected for parts of Maine.
It is another story, however, for the central part of the country. Temperatures are expected to be well above average for parts of the Great Plains and into the Great Lakes, with highs approaching 50°F (10°C) for some regions on Christmas Day that would normally see chilly temperatures and snow.