US gas prices dip after a two-day rally
The US price for natural gas was in negative territory early in the November 17 session after a near-8% spike over the last two trading days.
The December gas delivery contract at the US Henry Hub was down 2.1% as of 12:25 GMT to trade at $5.07/mn Btu. The US natural gas price has been trending lower since reaching $6.20/mn Btu on October 27.
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Analysis from Norwegian consultancy Rystad Energy said natural gas storage in the US market is at a “healthy level” and updated weather forecasts suggest a milder winter is in store for much of the country.
“However, upward price support remains in the form of resilient gas demand for power and a continued robust outlook for exports,” gas markets analyst Zongqiang Luo said. “As such, we maintain an outlook of elevated Henry Hub prices through the end of the year, hovering at around $5.50/mn Btu.”
The National Weather Service forecasts heavy rain for parts of the Pacific Northwest, where heavy flooding has already occurred. Rain and snow are expected for parts of the Great Lakes region, while New England can expect a bout of gusty winds and wet snow over the coming days.