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US Natgas Rally May be Limited

NATGAS

The recent rally in Henry Hub prices may be limited, according to Dow Jones, citing a report by EBW analytics.

  • "Henry Hub spot market weakness may soon reemerge-leading recent upward momentum for Nymex futures to fizzle," Eli Rubin of EBW Analytics says in a report.
  • While prices have ticked up, high storage levels and an expected sharp drop in heating demand over the next week are expected to add downside.
  • Low gas prices are also required to maintain the coal-to-gas switching driven by price competitiveness, according to EBW Analytics.
  • However, planned storage injections by local distribution companies will be slow until H2 April.
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The recent rally in Henry Hub prices may be limited, according to Dow Jones, citing a report by EBW analytics.

  • "Henry Hub spot market weakness may soon reemerge-leading recent upward momentum for Nymex futures to fizzle," Eli Rubin of EBW Analytics says in a report.
  • While prices have ticked up, high storage levels and an expected sharp drop in heating demand over the next week are expected to add downside.
  • Low gas prices are also required to maintain the coal-to-gas switching driven by price competitiveness, according to EBW Analytics.
  • However, planned storage injections by local distribution companies will be slow until H2 April.