Henry Hub rises, but stays below $4/mn Btu
The US benchmark for the price of natural gas was trading higher early in the December 10 session on forecasts of inclement weather for parts of the continental US.
The January gas delivery contract at the US Henry Hub was up 1.4% as of 12:38 GMT to trade at $3.87/mn Btu. Barring any major upswing during the current session, the contract is on pace for a net loss for the week despite recent gains.
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The National Weather Service is forecasting heavy snow and high winds across much of the Central Plains and into the upper Mississippi River valley. As much as 35cm (14in) of snow are expected for parts of southern Minnesota.
In the southern and central US states, there is an enhanced risk of rain and thunderstorms with the possibility of tornadoes.
Even with the recent rally, the US price of natural gas remains far away from peaks above $6/mn Btu from earlier this year. Nevertheless, with energy prices accounting for the bulk of US inflationary pressures, the federal government remains at attention.
White House economic advisor Brian Deese told reporters December 9 the government, however, was expecting prices to moderate over the coming months.
“We’ve seen natural gas prices come down,” he said. “We’ve seen real progress in unsticking some of the supply chain bottlenecks that have persisted in our economy.”