Henry Hub moves lower on increased gas supply
Benchmark prices for natural gas moved lower early in the November 1 trading session on assurances of adequate supply.
Henry Hub, the US benchmark for the price of natural gas, was down some 1.8% as of 11:31 GMT for the December supply contract to trade at $5.33/mn Btu. The benchmark had finished the previous week up 2.8%, following an 11% rally on October 25.
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The December contract at the Dutch TTF was also lower early in the session.
The US and European benchmarks cooled off on pledges from Russia that European storage levels would be adequate to meet winter demand.
“The prospect of rising supplies should provide a much-needed cushion just as the colder winter months arrive,” Stephen Brennock at London oil broker PVM wrote in a November 1 note.
In the US market, the federal government reported October 29 that domestic supplies were also on the rise. Using data from energy consultant firm IHS Markit, the Energy Information Administration reported that total natural gas production increased 1.4% from the week prior to average 98.1bn ft3/d.
“Average net imports from Canada increased by 1.1% from last week to 5.8bn ft3/d, the highest weekly average since the third week of February 2021,” EIA added.