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Henry Hub Tumbles Towards New Six-Month Low

NATURAL GAS

Front month Henry Hub has accelerated its decline in US hours to what would be its lowest closing level since June 14. Updated CPI data, a stable outlook for strong production in 2023, and milder weather are piling pressure on prices.

  • US Natgas JAN 24 down -4.4% at 2.32$/mmbtu
  • US Natgas JUN 24 down -2.8% at 2.36$/mmbtu
  • US Core CPI came in very much as expected in November at 0.285% M/M but Supercore (core services ex OER & rents) was slightly on the higher side at 0.44% M/M.
  • For 2023, natgas production is set for 103.7 bcf/d, unchanged on November’s forecast, according to The EIA’s Short Term Energy Outlook.
  • High storage and warm weather expected across the US are likely to limit demand in December.

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