Henry Hub on pace for a net gain this week
The December gas delivery contract at the US Henry Hub on November 5 was repeating previous trends with a soft open, though reports of depleted US inventories could change the mood later in the day.
The contract was down 0.35% as of 11:32 GMT to trade at $5.70/mn Btu. The contract opened in the red during several sessions earlier this week, but rallied to finish trading in positive territory. For the week, the US benchmark for the price of natural gas is on pace for a gain of at least 3% should the day finish in the black.
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The US Energy Information Administration (EIA) on November 4 reported that net injections into gas storage totalled 63bn ft3 during the week ending October 29. The total amount in storage, however, is 8% lower than year-ago levels and 3% below the five-year period ending in 2020 for this time of year.
EIA in its latest drilling productivity report expects only a minor increase in output from the seven primary shale basins from October to November.
In its weekly natural gas report, EIA added that demand along the US Gulf Coast increased, though regional prices moderated as a result of milder weather.