Rally resumes for Henry Hub
The November gas supply contract at the US Henry Hub was up more than 5% early in the trading day on October 25, recovering after a slump last week.
Henry Hub was trading at $5.74/mn Btu as of 11:11 GMT. The US benchmark suffered a loss of around 2.4% during the week ending October 22. The downturn was triggered in part by a forecast from the National Oceanic and Atmospheric Administration of a warmer-than-average winter season across much of the US.
Henry Hub prices are expected to rise in a tight market. The US Energy Information Administration in its monthly forecast for October said it expected Henry Hub to average $5.80/mn Btu during the fourth quarter. A peak price of $5.90/mn Btu is expected by January and a retraction is expected from there.