More demand for U.S. natural gas - June 12

Post Reply
dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

More demand for U.S. natural gas - June 12

Post by dan_s »

U.S. exports of liquefied natural gas (LNG) are set to surge this year from the already record levels in 2020 as demand in Asia and Europe is high, even in the off-peak season. All-time high LNG exports from America, coupled with rising domestic natural gas consumption outside of the power sector, are set to keep the U.S. benchmark, the Henry Hub spot price, averaging above $3 per million British thermal units (MMBtu) this year. This would be more than $1/MMBtu above last year’s average price of just $2.03/MMBtu, the Energy Information Administration said in its June Short-Term Energy Outlook (STEO) this week.

Read more: https://oilprice.com/Energy/Natural-Gas ... -Year.html

Based on the June 11th NYMEX Strip
Henry Hub natural gas prices for the next 4 quarters are way above what I am using in my forecast models.
$3.29 for Q3 2021
$3.37 for Q4 2021
$3.42 for Q1 2022
$2.77 for Q4 2022

See NYMEX strip prices here: https://www.cmegroup.com/trading/energy ... lobex.html

If summer stays hot and demand for U.S. LNG remains high, there is more upside for ngas prices.
Dan Steffens
Energy Prospectus Group
Post Reply