At the time of this post, the front month (SEP21) HH gas futures contract is up $0.24 to $4.14. More important is that all of the NYMEX contracts for October to February are also up more than $0.20.
AEGIS Notes: EIA reported a build of 29 Bcf for the week ending 8/20/2021. This was smaller than the median estimate of 39 Bcf. Today's stat fell outside the expected range, which was 44 Bcf on the more bearish end, and 35 Bcf on the more bullish end.
Prices were up in the five minutes following the announcement, to $4.079, from $3.994 just before 9:30am. < This triggered a short-covering rally.
Inventories for the US are now at a deficit of 563 Bcf to last year and a deficit of 189 Bcf to the five-year average.
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MY TAKE: Next week the OCT21 futures contract becomes the "front month". October will just be the beginning of the "Mother of all Bidding Wars" for gas supply because it is becoming crystal clear that the US will be short gas this coming winter and demand for LNG exports will stay strong all winter as well.
Natural Gas Price "Bidding War" - August 26
Natural Gas Price "Bidding War" - August 26
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group