Natural gas storage inventories in the US have crept within 5% of the five-year average and Canada is pushing even higher as the injection season winds down. However, key hubs throughout the US and Canada are reporting prices not maintained since the dawn of the shale revolution due to North America’s newfound exposure to global gas market forces. If the US and Canada experience a colder-than-normal winter, and drops inventories below 1 Tcf, pricing analysts expect the benchmark Henry Hub to crack $10/MMBtu, with others across the continent following suit.
Commodities Focus