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AMERICAS OIL: Tariff Threat Seen as Risk for U.S. Natural Gas Prices: Dow Jones

AMERICAS OIL

Tariff Threat Seen as Risk for U.S. Natural Gas Prices: Dow Jones

  • U.S. natural gas prices could face downward pressure from a tariff impact on U.S. GDP growth and that of its trade partners, BMI says in a note.
  • The Fitch Solutions unit sees Henry Hub prices averaging $3.4/mmBtu this year, up from $2.4 last year, with strong LNG export demand, below-average storage and growing power-sector use supportive, offset by higher production.
  • But "we note growing risks to U.S. and global gas demand amid the looming trade war with countries that are key buyers of U.S. gas."
  • BMI also points out an economic slowdown in Mexico would particularly weaken demand for U.S. gas, while a tariff on Canada would likely have a net bullish effect on Henry Hub prices.
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Tariff Threat Seen as Risk for U.S. Natural Gas Prices: Dow Jones

  • U.S. natural gas prices could face downward pressure from a tariff impact on U.S. GDP growth and that of its trade partners, BMI says in a note.
  • The Fitch Solutions unit sees Henry Hub prices averaging $3.4/mmBtu this year, up from $2.4 last year, with strong LNG export demand, below-average storage and growing power-sector use supportive, offset by higher production.
  • But "we note growing risks to U.S. and global gas demand amid the looming trade war with countries that are key buyers of U.S. gas."
  • BMI also points out an economic slowdown in Mexico would particularly weaken demand for U.S. gas, while a tariff on Canada would likely have a net bullish effect on Henry Hub prices.