Gas Bulls Bide Time

January 22, 2024

After topping $3.00/mmbtu for the first time since mid November 2023 and hitting $3.31/mmbtu on January 12, 2024, Henry Hub futures gave up nearly one dollar as the Artic blast waned.  Supply is bouncing back after the winter wallop. EIA reported a 154 Bcf withdrawal from underground storage for the week ending January 12, 2024. Inventories are 12.4% more year-over-year and more than 10% beyond the 5-year average.

Bulls may not have much momentum now and in the next few months, but starting October 24, 2024, almost every contract for the next five years is trading above $3.00/mmbtu. (Data source: ProphetX)