Henry Hub dips, but on pace for a weekly gain
The December gas delivery contract at the US Henry Hub was down in early trading on November 4, but remains on pace for another round of major gains for the week.
The contract was down some 0.72% to $5.63/mn Btu as of 11:41 GMT. The contract started the previous session at a lower level before rallying 2.1% to finish the day at $5.67/mn Btu. For the week, the benchmark is up 5.2% so far.
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Volatility greeted various weather reports for the US last month. Parts of the country may see warmer-than-average temperatures, though a La Nina weather pattern has sparked fears of a repeat of the February storm in the US south that idled large parts of the energy sector and led to crude oil, natural gas and power shortages.
The Reuters news service, meanwhile, reported that California regulators are considering an increase in storage capacity at the Aliso Canyon field, which suffered a months-long leak of harmful methane in 2015. That storage increase hints that California may be relying more on natural gas in the coming months.
Traders and investors, meanwhile, will focus on the November 4 release of federal data on commercial gas storage levels. Early indications suggest gas storage levels may be on the rise.