Henry Hub lingers below $4/mn Btu
The US benchmark for the price of natural gas was on the decline early in the December 9 session following federal estimates that domestic gas production could add bearish tones to the commodity next year.
The January gas deliver contract at the US Henry Hub was down 1.1% as of 12:30 GMT to trade at $3.77/mn Btu. The contract is down more than 8% so far this week.
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The drop follows estimates in the latest Short-Term Energy Outlook from the US Energy Information Administration (EIA) of lower natural gas prices next year. EIA forecasts that an expected increase in domestic natural gas production, coupled with a slower growth rate for exports of natural gas in liquid form, will keep a lid on prices. Henry Hub spiked above $6/mn Btu this year, though EIA estimated a price average of $3.98/mn Btu for 2022.
For weather in the continental United States, the National Weather Service forecasts wide swings. The first batch of widespread and significant accumulations of snow are expected in the Central Rockies before that moves east toward the Great Plains and Upper Midwest. But on the East Coast and southcentral US, record-breaking highs are expected through the weekend.