PRESS ROOM
Are we seeing a temporary decline in natural gas prices?
Thursday 06th October '22
US Henry Hub natural gas, which had been posting outsized gains over the summer, came crashing down by 25% in the month of September. As we entered September, summer air conditioning demand waned (summer 2022 was extraordinarily hot in the US), thus driving a sharp decline in natural gas demand. While the demand for that natural gas is high in Europe and Asia, the US’s ability to export it to these markets has been hampered by the fire at Freeport’s liquefied natural gas (LNG) terminal. The terminal accounts for close to 20% of the US’s export capacity. The partial opening of this terminal is expected in November, and we expect that to reduce US inventories and send prices higher when the time comes.