From 8:20 a.m. ET on Wednesday, the Henry Hub May futures contract traded 4.99% at $ 6,323 / MMBtu. All contracts up to February 2023 were also trading above $ 6 / MMBtu.
A number of factors have played a role in the gas price rally, including estimates of declining US production and record liquefied natural gas (LNG) exports as the United States seeks to help European allies with non-Russian gas supplies. Discussions in the European Union about possible sanctions or embargoes on Russian energy exports such as coal or oil are also pushing world gas prices higher. Expectations of a modest increase in U.S. domestic gas demand with the spring storms coming later this week also supported the gas price rally.
“Dry gas production has been pushing significantly higher over the past three weeks, but pipeline monitors are fluctuating wildly in flow estimates in early April,” Eli Rubin, senior analyst at EBW Analytics Group, told Natural Gas Intelligence. Tuesday.
For the period April 5 to 11, US gas demand is expected to be modest, according to NatGasWeather.com.
“A modest increase in national demand is expected on Friday-Sun as a strong spring storm comes out of the Midwest and into the Mississippi Valley and east with heavy rains, heavy thunderstorms and slightly cool highs of 40-60,” says NatGasWeather.com .
Gas prices in the US appear to be well supported due to long-standing concerns about Europe’s gas supply and possible supply disruptions at Russia’s insistence on countries it considers “hostile” – including the United States, all countries EU, Switzerland, Canada, Norway, South Korea, Japan and many more – start paying in rubles for gas.
By Tsvetana Paraskova for Oilprice.com
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