US loses capacity to surprise
The fourth quarter's dramatic price rise and fall is not expected to be repeated
The US benchmark Henry Hub front-month contract saw unprecedented volatility in the fourth quarter of 2018. But a combination of milder-than-average weather since November, and the prospect of production increases and infrastructure delivery in 2019, lead analysts to predict a much calmer 2019. In fact, the main risk to prices-as-usual is seen on the downside for the summer, dependent on temperatures and hence storage withdrawals for the remainder of Q1. The Chicago Mercantile Exchange (CME) Nymex Henry Hub front-month futures contract had been trading in a $2.65-3.30/mn Btu range from mid-April until early November, shooting higher to a peak of over $4.70/mn Btu on 28 November. The fall in
Also in this section
13 September 2024
The Ukraine–Russia gas transit and interconnection agreements are due to expire at the end of this year, but despite some uncertainty, Europe seems well-prepared
12 September 2024
The oil alliance must navigate the good, the bad and the ugly in its showdown with the market at the beginning of December
12 September 2024
The transition to oil evokes revolution and renaissance
11 September 2024
But the young nation may have to go through a fallow period before that project comes online as the Bayu-Undan field nears exhaustion
