Pricewatch | 11 Nov 2022 | Gas Matters Today

US gas benchmark Henry Hub bounced back on Thursday after the Energy Information Administration (EIA) announced a weaker-than-expected build in gas storage levels.

Henry Hub returned to the USD 6/MMBtu range on Thursday on the back of the EIA's latest gas storage report which showed US gas storage levels increased by 79 Bcf for the week ending 4 November. The build was weaker than the 83 Bcf injection analysts – surveyed by Reuters and Bloomberg – had expected.

While the injections were short of expectations, the latest build means US gas storage levels are now 2.1% (76 Bcf) lower than the five-year average, with some market observers expecting inventory levels to be in line with the five-year average before the start of December – when colder weather is expected to grip much of the nation.

Across the pond, European gas prices were mixed, with UK marker NBP falling in GBP/th terms but up slightly in USD/MMBtu terms. TTF edged higher, closing at the equivalent of USD 33.84/MMBtu.

Asian LNG marker JKM remained in the red, closing 0.7% lower at USD 27.55/MMBtu.

Crude prices rallied for the first time in four days amid easing recession fears in the US. However gains were capped by rising Covid-19 cases in China.

Front-month futures and indexes at last close with day-on-day changes (click to enlarge):

Time references based on London GMT. Brent, WTI, NBP, TTF and EU CO2 data from ICE. Henry Hub, JKM and API2 data from CME. Prices in USD/MMBtu based on exchange rates at last market close. All monetary values rounded to nearest whole cent/penny. Text and graphic copyright © Gas Strategies, all rights.