Natural gas: Prices may have peaked – ING
US natural gas prices have continued to rally, with front-month Henry Hub settling almost 29% higher at $6.80/MMBtu. The severe winter storm has impacted production and boosted heating demand, raising concerns about how long the disruption will last, ING commodities strategists Warren Patterson and Ewa Manthey report.
US natural gas prices surge amid storm
"US natural gas prices continued their rally yesterday, with front-month Henry Hub settling almost 29% higher at $6.80/MMBtu. This takes the total gains since 19 January to almost 120%. Yet the move in US natural gas is even more astonishing when looking at the spot Henry Hub price, which briefly broke above $30/MMBtu in recent days."
"The key question for the outlook, obviously, is how long this disruption lasts. There are some signs that production is already recovering, with gas output from the Permian estimated to be up 11% day-on-day yesterday. If this trend continues, it suggests prices have likely peaked."
"Developments in the US natural gas market remain a concern for the European market, as supply disruptions could weigh on US LNG exports to Europe."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
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